Final answer:
If the firm increases its output from 150 units to 151 units, the correct comparison between marginal revenue (MR) and marginal cost (MC) is that a. MC exceeds MR by $11.05.
Step-by-step explanation:
In economics, MR (Marginal Revenue) and MC (Marginal Cost) are key concepts. MR represents the additional revenue gained from selling one more unit of a product, while MC is the additional cost incurred by producing one more unit. Profit maximization occurs where MR equals MC in a competitive market.
If the firm increases its output from 150 units to 151 units, we need to compare the firm's marginal revenue (MR) and marginal cost (MC). If the firm is producing at a quantity where MC exceeds MR, then each additional unit is costing more than the revenue it brings in. In this case, the firm should reduce its output to where MR = MC in order to maximize profits. Therefore, the correct answer is option a. MC exceeds MR by $11.05.