Marcia is a fashion designer who runs a small clothing business in a competitive industry.Marcia specializes in making designer dresses.Marcia sells 10 dresses per month.Her monthly total revenue is $5,000.The marginal cost of making a dress is $600.In order to maximize profits,Marcia should

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To maximize profits, Marcia should produce at a quantity where marginal revenue (MR) equals marginal cost (MC). Since the revenue she earns from selling each dress is $500, her marginal revenue is $500. If the marginal cost to produce a dress is $600, she is making a loss of $100 on each additional dress she produces. Therefore, Marcia should produce fewer than 10 dresses per month to maximize her profits.

Marcia Is a Fashion Designer Who Runs a Small Clothing