Marcy owns a photography business in Mobile, Alabama. The market for photography is very competitive. At Marcy's current production level, her marginal cost is $20 and her marginal revenue is $28. In order to maximize profits, Marcy should decrease the price. decrease production. keep production the same. increase the price. increase production.
Marcy owns a photography business in Mobile, Alabama. The market for photography is very competitive. At Marcy's current production level, her marginal cost is $20 and her marginal revenue is $28. In order to maximize profits, Marcy should decrease the price. decrease production. keep production the same. increase the price. increase production.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Marcy owns a photography business in Mobile, Alabama. The market for photography is very competitive. At Marcy's current
production level, her marginal cost is $20 and her marginal
revenue is $28. In order to maximize profits, Marcy should
decrease the price.
decrease production.
keep production the same.
increase the price.
increase production.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff1ee9e5-fc97-463d-b809-04e300b75c90%2F5bcca542-d329-4af8-965a-8476cd661e40%2Fd8n1p0n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Marcy owns a photography business in Mobile, Alabama. The market for photography is very competitive. At Marcy's current
production level, her marginal cost is $20 and her marginal
revenue is $28. In order to maximize profits, Marcy should
decrease the price.
decrease production.
keep production the same.
increase the price.
increase production.
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