Consider marginal revenue and marginal cost

Reference no: EM13696692

Consider Marginal Revenue (MR) and Marginal Cost (MC) to answer this question.

(a) Explain how MR and MC are used to determine the optimal (maximum) allocation of resources to a particular product?

(b) Assume a position of business manager in certain firm. You just realized that MC exceeds MR. What will be your decision in allocating resources to this particular product? Explain why

Reference no: EM13696692

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