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Pricing
$
100
MR
90
80
70
60
MC
50
40 Optimum point
30
20
10
0
1 2 3 4 5 6
Sales units
The optimum price is $50. At output less than Q = 3, the extra cost of making a unit is
less than the extra revenue from selling it – so it is worth selling it.
At output greater than Q=3, the extra costs of making a unit exceed the revenue from
selling it.
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