A company is analyzing its output levels and finds that at 100 units produced, their total revenue is $1,000 and total cost is $800. At 150 units produced, total revenue is $1,200 and total cost is $1,500. Which classification correctly identifies the optimal output level based on the relationship between total revenue and total cost?

To find the optimal output level, we need to compare total revenue and total cost at different production levels. At 100 units, the company earns $1,000 in revenue and spends $800, leading to a profit of $200. However, at 150 units, the revenue increases to $1,200, but the cost rises more sharply to $1,500, resulting in a loss of $300. This means that producing 100 units is the best choice because it generates a profit, while producing 150 units leads to a loss. Therefore, the optimal output level is 100 units, where the company maximizes profit.