Table 14-3
Use the information for a competitive firm in the table below to answer the following questions.

-Refer to Table 14-3.If the firm finds that its marginal cost is $5,it should

Question

Table 14-3
Use the information for a competitive firm in the table below to answer the following questions.
 
-Refer to Table 14-3.If the firm finds that its marginal cost is $5,it should

Quizplus · Accepted Answer

The firm should increase production to maximize profit as long as the marginal revenue is greater than or equal to the marginal cost. In this case, when the marginal cost is $5, the marginal revenue is $10, which is greater than the marginal cost. Therefore, the firm should increase production to maximize profit.

Table 14-3 Use the Information for a Competitive Firm in the Table