Output rate

If a firm is producing an output rate at which marginal cost is greater than price, what should the firm do

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Submitted 240 days ago...

sshaer

New User (7)

Is this a competitive firm? In a competitive firm if the marginal cost exceeds the cost they should cut back on production. this means that you are spending more to produce the extra unit than you are gettng back.

price=mc your profits are maximized
price>mc increase your output rate
price<mc decrease your output rate

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