Table 14-8
Suppose that a firm in a competitive market faces the following revenues and costs:

-Refer to Table 14-8.The firm will produce a quantity greater than 4 because at 4 units of output,marginal cost

Question

Table 14-8
Suppose that a firm in a competitive market faces the following revenues and costs:
 
-Refer to Table 14-8.The firm will produce a quantity greater than 4 because at 4 units of output,marginal cost

Quizplus · Accepted Answer

At 4 units of output, the marginal cost is $7, which is less than the marginal revenue of $8. Therefore, the firm can increase its profits by producing more than 4 units until marginal cost equals marginal revenue.

Table 14-8 Suppose That a Firm in a Competitive Market Faces the Faces