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Should the quantity produced be increased or decreased

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Reference no: EM131604426

Question: 1. When production is 2000, marginal revenue is $4 per unit and marginal cost is $3.25 per unit. Do you expect maximum profit to occur at a production level above or below 2000? Explain.

2. If C'(500) = 75 and R'(500) = 100, should the quantity produced be increased or decreased from q = 500 in order to increase profits?

Reference no: EM131604426

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