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.
Marginal cost is the additional cost you incur to produce one more unit. In the example, it's what it costs to make one more cake. Typically, marginal costs start out high and decline as you increase production, as overhead gets spread out over more units and you put unused capacity to work at relatively low cost.ntersection. As long as your marginal benefit -- that is, your marginal revenue -- from producing one more item exceeds your marginal cost of producing that item, you'll continue to make a profit.