Question

A firm is currently operating where the MC of the last unit produced = $64, and the MR

of this unit = $70. What would you advise this firm to do?​

Answer 1

Answer:kepp producing

Explanation: Because it's MC is less than MR

Answer 2

See explanation

Step-by-step explanation:

We know, according to the profit maximization rule, Marginal Revenue = Marginal Cost

According to the question, marginal cost = $64;

marginal revenue = $70.

Therefore, MR > MC. Therefore, the company should continue operating the business. Whenever the company reaches MR = MC point, the company has to produce to get the highest possible profit.