Consider the following information for a fictional firm. The change in profit is MR – MC, the difference one more unit sold makes to total profit.
Quantity produced (units)Change in profit (dollars)
3,000$3
5,000$0
7,000$1
The firm should produce_________ units, because that is the quantity of production where ___________ which maximizes _______________.
Complete the sentence with the following words:
a. 5000
b. 7000
c. 3000
d. market share
e. profit
f. marginal revenue is greater than marginal cost
g. marginal revenue is less than marginal cost
h. marginal revenue is equal marginal cost