a-firm-is-considering-decreasing-production-the-current-price-is-15-marginal-cos

Question

A firm is considering decreasing production. The current price is $$15, marginal cost is 18$$, and marginal revenue is $15. Should the firm decrease production?

Accepted Answer

Yes, because marginal cost is greater than marginal revenue.

Answer

Yes, because marginal revenue is less than price.

Answer

No, because marginal cost is equal to price.

Answer

No, because marginal revenue is greater than price.

A firm is considering decreasing production. The current price is \$15, marginal cost is \$18, and marginal revenue is \$15. Should the firm decrease production?