Exhibit 7-4 Marginal revenue and cost per unit curves

-As shown in Exhibit 7-4,the firm will produce in the short run if the price per unit is at least equal to:

Question

Exhibit 7-4 Marginal revenue and cost per unit curves
 
-As shown in Exhibit 7-4,the firm will produce in the short run if the price per unit is at least equal to:

Quizplus · Accepted Answer

To determine whether the firm will produce in the short run, we need to look at the point where the marginal revenue (MR) curve intersects with the marginal cost (MC) curve. In this case, the intersection point is at a price of $15. This means that if the price per unit is at least $15, the firm will produce in the short run. Production will not be profitable if the price per unit is less than $15 as the marginal cost of production will be higher than the marginal revenue earned.

Exhibit 7-4 Marginal Revenue and Cost Per Unit Curves