Answer the Following Questions

question 138

Essay

Answer the following questions.
a. Suppose that a firm is producing where 0 < MR < MC. What would happen to total revenue, total cost, and profit if the firm produced one less unit of output?
b. Suppose that a firm is producing where MR > MC. What would happen to total revenue, total cost, and profit if the firm produced one more unit of output?
c. If a firm produces the next unit of output, total revenue rises from $12,000 to $13,500 and the marginal cost of the next unit is $1,700. Should the firm produce the next unit of output?

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Definitions:

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, usually measured as a vital sign of health.

Sympathetic Nervous System

A part of the autonomic nervous system that triggers the body's rapid involuntary response to dangerous or stressful situations, often referred to as the "fight or flight" response.

Physiological Arousal

The body's physical response to stimuli, manifested through increased heart rate, muscle tension, and other bodily changes.

Coronary Heart Disease (CHD)

A condition characterized by reduced blood flow to the heart muscle, often due to buildup of plaque in the coronary arteries.