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.
Profit Maximization. When the marginal costs equal marginal revenues, a firm maximizes its profit. In the example, the total cost of producing three shirts is $18. If each shirt sells for $1, the total profit is $27.Since marginal revenue is $15 and marginal cost is $3, it means the firm can still produce more units to increase profits.n the example, the total cost of producing three shirts is $18. If each shirt sells for $1, the total profit is $27. Since marginal revenue is $15 and marginal cost is $3, it means the firm can still produce more units to increase profits.