Suppose that a firm in a perfectly competitive industry finds that at its current output rate, marginal revenue exceeds the minimum average total cost of producing any feasible rate of output. furthermore, the firm is producing an output rate at which marginal cost is less than the average total cost at that rate of output. is the firm maximizing its economic profits?

The firm is not maximizing its economic profits.

Explanation:

When the marginal revenue exceeds the average total cost of production, it means that the firm is having profits.

Though this profit level is not maximized. For, the profit level to be maximized the marginal cost curve should be intersecting the average total cost curve at its minimum point.

Here, the marginal cost is less than average total cost. This means that ATC is falling and is yet to reach its minimum point.

So, the firm is enjoying profit but not maximizing it.

Suppose the firm is operating at Q, the profit will be maximized at Q'.

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.