Answer the Following Questions

Essay

Answer the following questions.
a. Suppose that a firm is producing where 0 < MR < MC. What would happen to total revenue, total cost, and profit if the firm produced one less unit of output?
b. Suppose that a firm is producing where MR > MC. What would happen to total revenue, total cost, and profit if the firm produced one more unit of output?
c. If a firm produces the next unit of output, total revenue rises from $12,000 to $13,500 and the marginal cost of the next unit is $1,700. Should the firm produce the next unit of output?