Suppose that in the figure to the right, a monopolist knows that if it produces 10units of output, its total revenues equal $60.00 and its total costs equal $42.70. If itwere to reduce the price of its product to $5.80 per unit, the quantity demanded,and hence its output, would rise to 11 units per week. If the total costs ofproducing 11 units were equal to $48.70 per week, would the marginal revenue ofproducing the 11th unit be greater or less than the marginal cost of producingthat unit? How would the firm's weekly economic profits be affected if the firmwere to produce the 11th unit?The marginal revenue of producing the 11th unit would be greater than themarginal cost by $ per unit. (Enter your response rounddecimal places.)greater thanequal toless thanPrice, Marginal Cost, Marginal Revenue ($ per unit)0MC12 3 4MR5 6 7 8 9 10 11 12 13 14 15Quantity (units per week)oM

Marginal Revenue is the additional revenue that is incurred by sale of an additional unit of output.…

were to produce the 11th unit? The marginal revenue of producing the 11th unit would be greater than the marginal cost by $ per unit. (Enter your response round decimal places.) greater than equal to less than

were to produce the 11th unit? The marginal revenue of producing the 11th unit would be greater than the marginal cost by $ per unit. (Enter your response round decimal places.) greater than equal to less than

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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