cowgiljl Posted June 9, 2004 Posted June 9, 2004 Suppose a firm in a perfectly competive industry is producing a output of 10 units. The firms total revenue at this output is $80 and its total cost is $30. The firms marginal cost associated with the 11 unit of a output is $12. What can i say about an increase in production should it produce 11 unit or no this is what i have output TC MC 10 $30 $3 per unit 11 $42 $12 per unit profit is $50 @10 units = 30/10 = $3 @11 unit = 42/11 = $3.80 it should not increase production because the cost more per unit to make did i go about this right? thanks joe
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