Answered: If marginal revenue exceeds marginal…

If marginal revenue exceeds marginal cost, a competitive firm can increase profit by: a. Increasing output. b. Decreasing output. c. Making no change in output. d. Raising its price

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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Question

If marginal revenue exceeds marginal cost, a competitive firm can increase profit by:

a. Increasing output.

b. Decreasing output.

c. Making no change in output.

d. Raising its price

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