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.
Total revenue, top to bottom: 0; $2; $4; $6; $8; $10. Marginal revenue, top to bottom: $2, throughout. (a) The industry is purely competitiveâthis firm is a âprice taker.â The firm is so small relative to the size of the market that it can change its level of output without affecting the market price.