Suppose you're producing designer clothes for Barbie dolls. You're producing 100 units and discover that the MR for the 100th unit is $50 while the MC of the 100th unit is $45. If you're in the short run, it's a signal for you to

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In the short run, if the marginal revenue (MR) of producing an additional unit is greater than the marginal cost (MC) of producing that unit, it indicates that producing that unit is profitable. Therefore, increasing production beyond the current level (in this case, 100 units) can potentially increase overall profit.

Suppose You're Producing Designer Clothes for Barbie Dolls