The marginal revenue is about 4 it costs them about 5 to


A firm has hired you as a consultant. This firm is not perfectly competitive--it has some control over prices. 

This firm is currently selling 1000 units, generating $10,000 in revenues and $12000 in total costs. The marginal revenue is about $4, it costs them about $5 to make another unit. Per unit variable costs are about $5 per unit. 

Based on your analysis, what do you recommend?

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Business Economics: The marginal revenue is about 4 it costs them about 5 to
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