Consider the firm discussed in question 13. If the firm were to produce the 12th unit and thereby incur hourly total costs of $65, what would be its marginal cost? Based on this answer and your answers to question 13, would producing 12 units maximize the firm’s profits? What would be its hourly economic profits?
Suppose that the firm with the costs and revenues tabulated below is contemplating whether to produce 12 units of output. If it were to produce this many units, what (if anything) would happen to the market price? What would be the firm’s marginal revenue for the 12th unit produced? What would be the firm’s total revenues per hour?
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