What advice would you give to a firm if it is considering producing the 40th unit...

Question

Question

What advice would you give to a firm if it is considering producing the 40^th unit of output if
P = MR = 25 and the cost of producing the 40^th unit of output is 32? Explain.

business economics

Answer 1

Answer #1

HERE INt the question, MR=25.

And mc for producing 40th unit is 32 which means.

MR<MC.company is facing loss while producing 40th unit.

So I will not suggest producing up to 40 of the unit because the firm will face loss.

Answer 2

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