Suppose that a firm is producing where MR MC. If the firm produced one more unit of output, total revenue would ____ and profit would ____.

Name: Suppose that a firm is producing where MR > MC. If the firm produced one more unit of output, total revenue would ____ and profit would ____.
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Question

Suppose that a firm is producing where MR > MC. If the firm produced one more unit of output, total revenue would ____ and profit would ____.

Quizplus · Accepted Answer

When MR (Marginal Revenue) is greater than MC (Marginal Cost), producing one more unit increases total revenue and profit, because the revenue from selling that additional unit exceeds the cost of producing it.

Suppose That a Firm Is Producing Where MR > MC