Suppose a cell phone manufacturer currently sells 20,000 cell phones per week and makes a profit of $5,000 per week. A manager at the plant observes, "Although the last 3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of cell phones."
Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and if so by how much?
A) Its profit will be $700 higher.
B) Its profit will be $6,000 lower.
C) Its profit will be $700 lower.
D) Its profit will be $6,700 higher.