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Profit

Question 13 • 2102320-Economics HONORS - Edgenuity Teacher

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When the market price of bikes increases from $50 to $60, the marginal revenue for each unit sold also increases to $60. According to the profit-maximization rule, the company will increase production to the point where the marginal cost equals the new price of $60. Because the price is higher and the quantity produced has increased, the company's total profit will rise.

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