A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500th unit of output is $14.50; and the average total cost of producing the 500th unit of output is $9.50 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
For this firm, price = marginal revenue = $12 . Since marginal cost exceeds marginal revenue, the firm should decrease its output in order to increase its profit.
Economics
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The amount of time it takes the government to determine the size of a tax policy is known as the
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Economics