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 total revenueâtotal cost perspective relies on the fact that profit equals revenue minus cost and focuses on maximizing this difference, and the marginal revenue â marginal cost perspective is based on the fact that total profit reaches its maximum point where marginal revenue equals marginal cost. Contents.