Chapter 14 10. Refer to Table 14-1. If the firm is producing 3 units of output, it should produce a. more units of output because its marginal revenue is greater than its marginal cost. b. fewer units of output because its marginal revenue is less than its marginal cost. c. more units of output because its marginal revenue is less than its marginal cost. d. fewer units of output because its marginal revenue is greater than its marginal cost.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Chapter 14
10. Refer to Table 14-1. If the firm is producing 3 units of output, it should produce
a. more units of output because its marginal revenue is greater than its marginal cost.
b. fewer units of output because its marginal revenue is less than its marginal cost.
c. more units of output because its marginal revenue is less than its marginal cost.
d. fewer units of output because its marginal revenue is greater than its marginal cost.
Transcribed Image Text:Chapter 14 10. Refer to Table 14-1. If the firm is producing 3 units of output, it should produce a. more units of output because its marginal revenue is greater than its marginal cost. b. fewer units of output because its marginal revenue is less than its marginal cost. c. more units of output because its marginal revenue is less than its marginal cost. d. fewer units of output because its marginal revenue is greater than its marginal cost.
Table 14-1
Suppose that a firm in a competitive market faces the following prices and costs:
Price Quantity
$6
$6
$6
$6
$6
$6
$6
10
1
5
Total
Cost
$4
$6
$9
$13
$18
$24
$31
Transcribed Image Text:Table 14-1 Suppose that a firm in a competitive market faces the following prices and costs: Price Quantity $6 $6 $6 $6 $6 $6 $6 10 1 5 Total Cost $4 $6 $9 $13 $18 $24 $31
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