At a price of $18, the marginal revenue of a movie seller is $12. If the marginal cost of a movie is $9, the firm should increase its price.

Name: At a price of $18, the marginal revenue of a movie seller is $12. If the marginal cost of a movie is $9, the firm should increase its price.
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Question

Quizplus · Accepted Answer

Since the marginal revenue ($12) is greater than the marginal cost ($9), the firm should continue to sell more at the current price to increase profit, not increase its price.

At a Price of $18, the Marginal Revenue of a Movie