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.
If a firm, by producing two more units of output can increase total revenue by $100, then the marginal benefit or marginal revenue per additional unit of output would be $50. This is computed by taking the change in total revenue divided by the change in output.