If mara’s puzzle factory is operating at a quantity in which the marginal revenue from the last puzzle produced is $20, marginal cost is $15, and average total cost is $10. what should mara do to maximize profits?

Respuesta :

The condition for a profit maximising point is where MR = MC.

When MR is greater than MC, the firm should increase production to take hold of the extra profit, therefore Mara should increase production.