If a perfectly competitive firm is producing a quantity where P MC,then the firm can increase profit by:

Question

If a perfectly competitive firm is producing a quantity where P > MC,then the firm can increase profit by:

Quizplus · Accepted Answer

In a perfectly competitive market, if the price (P) is greater than the marginal cost (MC) of production, the firm can increase its profit by producing more. This is because the additional cost of producing one more unit (MC) is less than the revenue gained from selling that unit at the market price (P), leading to an increase in overall profit.

If a Perfectly Competitive Firm Is Producing a Quantity Where