Jump to content

econmics help


cowgiljl

Recommended Posts

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

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.