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.
As long as the marginal benefit is greater than or equal to the marginal cost, then the choice would be rational. If a firm, by producing two more units of output can increase total revenue by $100, then the marginal benefit or marginal revenue per additional unit of output would be $50.f costs increase by $80 by producing two more units of output, then the marginal cost per unit of output would be $40. A marginal benefit of $50 compared to the Marginal Cost of $40 would indicate that this would be a wise choice.