1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Homework Help: Struggling in econ

  1. Jun 9, 2004 #1
    :confused: 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. jcsd
  3. Jun 9, 2004 #2


    User Avatar
    Science Advisor
    Homework Helper

    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.
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook