As a firm in a perfectly competitive market increases its output,its marginal revenue ________ and its marginal cost ________.

Name: As a firm in a perfectly competitive market increases its output,its marginal revenue ________ and its marginal cost ________.
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Question

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In a perfectly competitive market, marginal revenue remains constant as it equals the market price. However, marginal cost typically increases as output increases due to the law of diminishing returns.

As a Firm in a Perfectly Competitive Market Increases Its