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:

Abstract Thought

The ability to think about concepts, ideas, and principles that are not physically present or directly sensed, involving complex cognitive processing.

Cognitive Development

The process of growth and change in intellectual capabilities that influence a person's behavior and learning ability.

Basic Trust

The belief in the reliability, truth, ability, or strength of someone or something, often developed in early childhood.

Mistrust

A lack of confidence or faith in a person or thing, often resulting from negative past experiences or perceptions of unreliability.