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Answer to Question #308206 in Economics for Teon

Question #308206

The marginal revenue of a widget is $14. If the marginal cost is $11 should the additional unit be produced why ?


1
Expert's answer
2022-03-09T10:31:50-0500

If the marginal cost is $11, and the marginal revenue of a widget is $14, then the additional unit should be produced, if the firm wants to maximize its profits at MR = MC.


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