W Cav Question 8 (1 point)

Suppose over the range of relevant possible output, you have estimated a Total Cost Function of TC = 100 + 10Q + .02Q². Your current output is Q = 2000. Since you can sell each unit produced at P = $110 your Marginal Revenue is $110 per unit. Your current output of Q = 2000 is

Question 8 options:

a)	too high, you would increase profits if you reduced output a little bit

b)	I would not select this answer

c)	is the profit maximizing output level

d)	too low, you would increase profits if you increased output a little bit