Table 14-3

-Refer to Table 14-3.If the firm finds that its marginal cost is $16,what should it do

Name: Table 14-3 -Refer to Table 14-3.If the firm finds that its marginal cost is $16,what should it do
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Question

Table 14-3
 
-Refer to Table 14-3.If the firm finds that its marginal cost is $16,what should it do

Quizplus · Accepted Answer

The firm should increase production to maximize profit because the marginal cost of $16 is less than the marginal revenue at the current level of output. Increasing production will increase revenue more than the cost of producing additional units, resulting in higher profits.

Table 14-3 -Refer to Table 14-3.If the Firm Finds That Its Marginal