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In Figure 8.4, at 200 units of output: Figure 8.4 Two graphs stacked vertically-TC and TR are in the upper graph; a hill shaped total
In Figure 8.4, at 200 units of output: Figure 8.4 Two graphs stacked vertically-TC and TR are in the upper graph; a hill shaped total profit curve is in the lower graph; * is at the top of the hill; to the left of *, between zero and * total profit, quantity 200 is marked; to the right of *, between * and zero total profit, quantity 400 is marked In Figure 8.4, at 200 units of output: marginal cost is greater than marginal revenue. the last unit of output adds more to revenue than cost. the last unit of output adds more to cost than revenue. the firms should cut output
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