Answer:
(C) continue to give riding lessons to 20 children per month.
Explanation:
marginal revenue:
4,000 revenue / 20 children = 200 marginal revenue
marginal cost= 200
The company is in the point at which maximizes profit
marginal revenue = marginal cost
The increase in revenue per unit is equal to increase of Cost per unit.
ΔTotal Revenue/ΔQuantity = ΔTotal Cost/dQuantity