If a perfectly competitive firm is producing a quantity where MC MR,then profit:

Name: If a perfectly competitive firm is producing a quantity where MC > MR,then profit:
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Question

If a perfectly competitive firm is producing a quantity where MC > MR,then profit:

Quizplus · Accepted Answer

When MC > MR, it means that the cost of producing one more unit is greater than the revenue gained from selling that additional unit. Therefore, the firm is producing too much and should decrease production to maximize profit. By decreasing production, the firm can reduce its costs and increase its overall profit.

If a Perfectly Competitive Firm Is Producing a Quantity Where