Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 2 - The Key Principles of Economics - Exercises - 2.2 The Marginal Principle - Page 44: 2.2

Answer

Yes

Work Step by Step

Yes, because: The marginal benefit of producing the third movie (USD 135M) is greater than the marginal cost of producing the third movie (USD 125M). As a general rule, producers will produce more if the marginal benefit is greater than the marginal cost.
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