Asked by Evette Juarez on Jul 05, 2024
Verified
Tony runs Read Economic Reports.If Tony finds that the cost of completing an additional report is $100 and someone offers him $125 to complete this additional report,Tony should:
A) not complete the additional report since he will incur a loss.
B) complete the additional report only if the person buys two additional reports.
C) complete the additional report.
D) not complete the additional report since his additional cost is more than his additional revenue.
Additional Report
Supplementary document or analysis that provides extra information beyond the initial report or analysis.
Marginal Cost
The additional financial burden of producing one more unit of a product or service.
- Outline the process companies undertake to establish production capacities based on marginal profits and expenses.
Verified Answer
TS
Thomas SpartinosJul 09, 2024
Final Answer :
C
Explanation :
Tony should complete the additional report because the revenue he will earn ($125) is greater than the cost of completing the report ($100). This means that Tony will earn a profit of $25.
Learning Objectives
- Outline the process companies undertake to establish production capacities based on marginal profits and expenses.
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