15. A competitive firm sells its output for $20 per unit. The 50th unit of outpu

Question

15.   A competitive firm sells its output for $20 per unit. The 50th unit of output produced has a marginal cost of $22. If the firm sells the 50th unit, it will experience a change in profit equal to _____ $ ____
Please enter a whole number, with no decimal point. 15.   A competitive firm sells its output for $20 per unit. The 50th unit of output produced has a marginal cost of $22. If the firm sells the 50th unit, it will experience a change in profit equal to _____ $ ____
Please enter a whole number, with no decimal point.

Explanation / Answer

A competitive firm sells its outout for $ 20 per unit.

Marginal cost of the 50th unit being produced= $ 22

It follows that the production of the 50th unit of output

Increase the firms total revenue by $ 20

Increases the firms total cost by $ 22

Thereby, decreasing teh firms profit by $ 2

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