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-(Figure: Marginal Decision Rule) Use Figure: The Marginal Decision Rule.Given the market price P₁,B is the _____ curve.

Question

Use the following to answer question: -(Figure: Marginal Decision Rule)Use Figure: The Marginal Decision Rule.Given the market price P₁,B is the _____ curve.

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The curve labeled MR is the marginal revenue curve, which shows the additional revenue earned from selling one more unit of output. The marginal decision rule states that a profit-maximizing firm should produce at the point where marginal revenue equals marginal cost. Therefore, the best choice for the firm is the quantity where the MR and MC curves intersect. In this case, that is at output level Q1U1.

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