Question:

Economics - Marginal Cost - 10 PTS?

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I am currently producing 50,000 units of my product. At this level of output, my marginal revenue is $10 and my marginal cost is $5. In order to increase profits I should

produce more than 50,000 units

produce less than 50,000 units

do nothing (that is I’m already maximizing profits)

there is not enough information to answer the question

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2 ANSWERS


  1. produce more than 50,000 units


  2. Since MR>MC, profit is increasing.  Produce more than 50,000 units until MR = MC

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