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.
The profit maximizing quantity of output occurs where marginal cost = marginal revenue (i.e., where the cost of producing another unit = the revenue you can get from having produced it). If fixed costs are increased, the average cost increases, but the marginal cost (cost per additional unit) is unchanged.Since neither marginal cost nor marginal revenue are affected, there will be no change in the profit maximizing quantity of output produced.kuiper Â· 8 years ago.Thumbs up.f fixed costs are increased, the average cost increases, but the marginal cost (cost per additional unit) is unchanged. Since neither marginal cost nor marginal revenue are affected, there will be no change in the profit maximizing quantity of output produced. kuiper Â· 8 years ago. Thumbs up.