Metro North Railway is trying to decide whether or not to run an additional train into New York City from New Haven, Connecticut at 8:15 a.m. The total cost of running trains between 8:00 a.m. and 9:00 a.m. is $45,000 and the expected revenues on any given day are $100,000 during this time period. The cost of running the additional train is $4,000 and it is expected that revenues will rise to $103,500. Metro North should ( ).
A.
run the train because the total revenues are greater than the total costs
B.
run the train because the firm’s revenues will rise
C.
not run the train because the total costs are already too high
D.
not run the train because the marginal cost of $4000 is greater than the marginal revenue of $3,500