If Will’s Print Shop competes in a perfectly competitive market and he charges $10 per printing job, what is the marginal revenue of his 3rd print job?
a) $3.33
b) $10.00
c) $30.00
d) Between $10.00 and $30.00
If Mara’s Puzzle Factory is operating at a quantity in which the marginal revenue from the last puzzle produced is $20, marginal cost is $15, and average total cost is $10. What should Mara do to maximize profits?
a) Leave her production exactly where it is because she is clearly earning a profit.
b) Decrease her production of puzzles.
c) Increase her production of puzzles.
d) Shut down her business because it is losing money.