Answer
A. MR exceeds MC, and the firm should expand its output.
Work Step by Step
At 7 units, the MR is 131 whereas the MC is 100, which means that MR exceeds MC by $31. Hence, option A is true.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 8 - Pure Competition in the Short Run - Quick Quiz for Figure 8.3 - Page 170: 2
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