If the marginal revenue is higher than marginal cost the monopoly can increase profit by

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asked Oct 14, 2022 189k views

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Beercohol · Answer 1 · 2022-10-20T11:34:17+0000

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If the marginal revenue exceeds the marginal cost, then the firm can increase profit by producing one more unit of output. For example, at an output of 4 in Figure 3, marginal revenue is 600 and marginal cost is 250, so producing this unit will clearly add to overall profits.

If the marginal revenue is higher than marginal cost the monopoly can increase profit by

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