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A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the unit for $6. The firm should produce more than 100 units in order to maximize its profits (or minimize its losses). a. TRUE b. FALSE

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esarango28

Answer:

The correct answer is a) TRUE

Explanation:

The exercise reports that the cost of producing the unit is $5 and the sells price is $6. This means that if you increase production, the earns will increase too.

However, keep in mind that the exercise doesn´t specify the fixed cost and variable cost, just say "production cost". If the exercise specified the fixed cost, probably the answer would change

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