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Marcia is a fashion designer who runs a small clothing business in a competitive

ID: 2506164 • Letter: M

Question

Marcia is a fashion designer who runs a small clothing business in a competitive industry.  Marcia specializes in making designer dresses.  Marcia sells 10 dresses per month.  Her monthly total revenue is $5,000.  The marginal cost of making a dress is $400.  In order to maximize profits, Marcia should                             

a. make more than 10 dresses per month. b. make fewer than 10 dresses per month. c. continue to make 10 dresses per month. d. We do not have enough information with which to answer the question.

Explanation / Answer

a. make more than 10 dresses per month. a. make more than 10 dresses per month.