Assume that a perfectly competitive firm is currenly producing 5,000 units of output and is earning $10,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. Is this firm producing the profit maximizing level of output? How do you know?© BrainMass Inc. brainmass.com March 21, 2019, 5:41 pm ad1c9bdddf
In a perfectly competitive market, a firm's marginal revenue is constantly the market price, i.e., MR = ...
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