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You are managing a perfectly competitive landscaping firm. You have carefully calculated that the cost of...

You are managing a perfectly competitive landscaping firm. You have carefully calculated that the cost of mowing and tending one additional yard is $25 and the price of that work is $40. To increase your profit, you should _____________ your output so as to product the quantity where _______________

decrease; MR < MC  OR decrease; MR= MC OR decrease; MR > MC OR increase: MR<MC OR increase; MR = MC OR increase; MR > MC

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Answer #1

MC=25

MR=40

Since MC>MR the producer and increase its output so that his profits can rise.

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