benjamenburton1
benjamenburton1
04.10.2019 • 
Business

Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week. the plant foreman observes, "although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000, we are only making an overall profit of $3,000 per week so i think we need to cut back on production.

had the firm not produced and sold the last 500 cigars, would its profit be higher or lower, and if so by how much?
(a) its profit would be exist300 lower
(b) its profit would be exist 1,000 higher.
(c) its profit would be exist500 higher.
(d) its profit would be exist1, 500 lower

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