mc=ac
Answers for If A Firm Is Producing A Level Of Output Where MR Exceeds MC, Would It Improve Profits By Increasing Output, Decreasing Output Or Keeping Output Unchanged?
Each firm adjusts its output so that its cost, including profit, are covered.
A single firm supplies all the output
[object Object]
The level of output every first strives for is when marginal revenue equals marginal cost.
It's when the MR is not equal to MC. The firm in this case is unable to produce output the equals marginal revenue to marginal cost.
Depending on the marginal output of the workers at that level of output, an additional two could increase output my more than 8, exactly eight, or less than 8 units.
Answers for If A Firm Is Producing A Level Of Output Where MR Exceeds MC, Would It Improve Profits By Increasing Output, Decreasing Output Or Keeping Output Unchanged?
A firm with market power has the ability to control prices and total market output .
the value of a firm determines their wealth.if the value of a firm,which is the market price per share of the total number of shares issued,is increased,invariably the shareholders' return is increased..by John I Agwu
this is obtained when a firm equates its marginal revenue to its marginal cost.At a level of output where MR exceeds MC,then the firm should increase output since the addition to revenue is greater than the addition to revenue.Where a firm's MR is less than its MC,the firm should lower its output since the addition to costs is greater than the addition to revenue.
Marginal cost is
Each firm adjusts its output so that its cost, including profit, are covered.
a desk
A single firm supplies all the output
[object Object]
To increase profit the firm will decrease output to a point where MC=MR. This is the Profit Maximisation point