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28 Apr 2018
12. Assume the sum of MR is less than the sum of MC at the point that meets the criteria for both FOC and SOC. In this case, the firm should A. reduce output. produce a zero level of output. increase output. increase output if FC are less than TVC. D.
12. Assume the sum of MR is less than the sum of MC at the point that meets the criteria for both FOC and SOC. In this case, the firm should A. reduce output. produce a zero level of output. increase output. increase output if FC are less than TVC. D.
Keith LeannonLv2
30 Apr 2018
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Related questions
An online software producer has fixed costs of $40,000 per month and her Total Variable Costs (TVC) as a function of output Q are given below. Complete the table (TC, MC, TR, and MR).
| Quantity | TVC | Price |
| 10,000 | $15,000 | $5 |
| 20,000 | $20,000 | $4 |
| 30,000 | $30,000 | $3 |
| 40,000 | $50,000 | $2 |
| 50,000 | $80,000 | $1 |
What should be the output at the profit maximization level?
How much should the firm produce if fixed cost increased to $60000?
