Table 13-8
Suppose that a firm in a competitive market faces the following revenues and costs:

-Refer to Table 13-8.The firm will produce a quantity greater than 4 because at 4 units of output,marginal cost

Question

Table 13-8
Suppose that a firm in a competitive market faces the following revenues and costs:
 
-Refer to Table 13-8.The firm will produce a quantity greater than 4 because at 4 units of output,marginal cost

Quizplus · Accepted Answer

At 4 units of output, marginal cost is $12 and marginal revenue is $10. Since marginal cost is less than marginal revenue, the firm can still increase profit by producing more output. Therefore, the firm will produce a quantity greater than 4.

Table 13-8 Suppose That a Firm in a Competitive Market Faces the Faces