Figure 9-2

-Refer to Figure 9-2.What happens if the firm produces more than Q₄ units?

Name: Figure 9-2 -Refer to Figure 9-2.What happens if the firm produces more than Q₄ units?
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Question

Figure 9-2
 
-Refer to Figure 9-2.What happens if the firm produces more than Q₄ units?

Quizplus · Accepted Answer

Producing more than Q₄ units would result in a loss for the firm, as the marginal cost of producing each additional unit is higher than the marginal revenue earned from selling it. This would lead to a decrease in profit, or even a loss depending on the level of excess production.

Figure 9-2 -Refer to Figure 9-2.What Happens If the Firm Produces More