Exhibit 8-4 Marginal cost and revenue for a firm UnitQua…

Exhibit 8-4 Marginal cost and revenue for a firm UnitQuantity Marginal Cost Marginal Revenue 12 $  5 $9 13     6   9 14     7   9 15     8   9 16     9   9 17   10   9 In Exhibit 8-4, this firm is currently producing 14 units of output. What would you advise this firm to do?

Exhibit 7-9 Cost schedule for firm X OutputQuantity Total…

Exhibit 7-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $    0 1   100     50 2   100     84 3   100   108 4   100   127 5   100   150 As shown in Exhibit 7-9, the marginal cost of producing the third unit is: