Respuesta :
If a perfectly competitive firm can sell as much as it wishes at the market price, can the firm not simply increase its profits by selling an extremely high quantity At a high level of production, marginal cost and the average cost of production will rise.
In economics, marginal cost is the change in total cost that occurs when production increases and is the cost of producing additional quantities. In some contexts, it may refer to a unit increase in spending, or it may refer to the rate of change in total cost when spending increases slightly. As Figure 1 shows, marginal cost is measured in dollars per unit, the total cost is measured in dollars, and marginal cost is the gradient of the total cost, the rate at which total cost increases with production. The marginal cost is different from the average cost, which is the total cost divided by the number of units produced.
The marginal cost of production includes all costs that vary depending on the production level. For example, if a company needs to build an entirely new factory to produce more goods, the cost of building the factory is marginal.
Learn more about marginal cost here: https://brainly.com/question/12231343
#SPJ4
