If a firm holds a pure monopoly in the market and is able to sell 5 units of output at $4.00 per unit and 6 units of output at $3,90 per unit, it will produce and sell the sixth unit if its marginal cost is
4.00 or less
3.40 or less
3.90 or less
4.00 or less
.
To determine at what price the firm will produce and sell the sixth unit, we need to compare the marginal cost of production to the price at which the firm can sell the unit.
The marginal cost is the additional cost incurred by the firm to produce one more unit. In this case, the marginal cost is not provided directly, but we can calculate it using the given information.
To find the marginal cost, we need to compare the cost of producing 5 units to the cost of producing 6 units. From the given information, we know that the firm can sell 5 units at $4.00 per unit and 6 units at $3.90 per unit. This indicates that the firm is willing to produce and sell the sixth unit at a price lower than $4.00, specifically $3.90.
Therefore, the firm will produce and sell the sixth unit if its marginal cost is $3.90 or less.