\\ Question Completion Status: Table 14-9 Suppose that a firm in a competitive m

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Question Completion Status: Table 14-9 Suppose that a firm in a competitive market faces the following revenues and costs Quantity 0 Total Revenue S0 $9 $18 $27 $36 $45 $54 Total Cost $10 $14 $19 $25 $32 $40 $49 $59 $70 $82 2 3 6 $72 $81 Refer to Table 14-9. If the firm's marginal cost is $11, it should a. increase the price of the product to maximize prot. O b. reduce production to increase profit Oc. increase production to maximize profit d advertise to attract additional buyers to maximize profit Click Save and Submit to save and submit. Click Save All Ansucers to save all answers. Save A

Explanation / Answer

Answer : [C] : It should increase production to maximize profit.

Justification : At initial stage of production firm tends to increase its productions inorder to increase its profit.

Formula to get marginal cost is :

Marginal cost = change in costs / Change in quantity.

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