A firm’s profit is maximized when marginal revenue is equal to marginal
cost.
Economics MCQ - Economics Section 1
The firm can hire two unskilled workers for 150 x 2 = 300 or one skilled worker for 280. The firm will minimize costs at the higher level of production by hiring one additional skilled worker at a total cost of 280.
In an oligopoly, we have relatively few sellers and the barriers to entry
into or exit from the industry are high.
In monopolistic competition, we have many sellers, the products are
differentiated and the advertising and marketing expenses are high.
In perfect competition, the product cannot be differentiated by
advertising or any other means.
