Suppose that the firm with the costs and revenues shown in the figure to the right is contemplating whether or not to produce $12$ units of output. If it were to produce this many$$ units, what$($if anything$)$ would happen to the market$$ price? What would be the$$ firm's marginal revenue for the $12$th unit$$ produced? What would be the$$ firm's total revenues per$$ hour?

Part $2$

This firm is

$$

oligopolistic

perfectly competitive

monopolistically competitive

monopolistic

$,$ so its output rate is

$$

so large

so small

in relation to the industry as a whole that its production

$$

could

could not

influence the market$$ price, which would

$$

fall below

remain at

rise above

$$$$4$ per unit. The market price

$$

is less than

equals

exceeds

the$$ firm's marginal$$ revenue, which therefore would be MR

$$

$>$

$<$

$=$

$$$$4$ per unit. The$$ firm's hourly total revenues if it were to produce $12$ units would be TR

$$

$<$

$>$

$=$

$$$$48.$