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increase output
benefit exceeds its marginal cost.
the marginal benefit of that action exceeds the marginal cost of that action.
The company will go out of business
MC is the cost of producing one extra good, so if the cost of producing that one extra good is above the average, then the ATC increases.
increase output
benefit exceeds its marginal cost.
the marginal benefit of that action exceeds the marginal cost of that action.
The company will go out of business
The company will go out of business
MC is the cost of producing one extra good, so if the cost of producing that one extra good is above the average, then the ATC increases.
Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
profit is maximized
marginal cost
The company will lose money on each additional unit produced
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost