The deep state entered Americaâs national discourse in 2017 with the feeling of an already familiar character, ready to assume a starring role as hero or villainâdepending on how you feel about Trump.
If a firm produces past that point, then marginal revenue is less than marginal cost. This means that the firm is losing profit with each additional unit of output and it should produce less. Remember that a competitive firm has a flat MR curve which is equal to the market price.
Note that if the price is constant, then the average revenue and marginal revenues equal the price. Below is a table of a hypothetical firm, which has a choice of selling quantities ranging from 0 to 130. The product's price is constant at $2. Therefore, average and marginal revenue are $2, as well.For example, at a quantity of 110 units, the total revenue is 110 times $2, or $220. The marginal revenue is the change in total revenue divided by the change in quantity.he product's price is constant at $2. Therefore, average and marginal revenue are $2, as well. For example, at a quantity of 110 units, the total revenue is 110 times $2, or $220.