# Struggling in econ

1. Jun 9, 2004

### cowgiljl

Suppose a firm in a perfectly competive industry is producing a output of 10 units. The firms total revenue at this output is $80 and its total cost is$30. The firms marginal cost associated with the 11 unit of a output is $12. What can i say about an increase in production should it produce 11 unit or no this is what i have output TC MC 10$30 $3 per unit 11$42 $12 per unit profit is$50

@10 units = 30/10 = $3 @11 unit = 42/11 =$3.80

it should not increase production because the cost more per unit to make

did i go about this right?
thanks joe

2. Jun 9, 2004

### AKG

I'm not sure, but I think it would depend on the marginal revenue (if there is such a thing) associated with the 11th unit. And is profit/unit of real concern, or net profit? I would think it would be profit. Of course, if this is a homework question, it really depends on what your teacher expects and has taught you.

Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook