- #1
cowgiljl
- 63
- 1
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
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