If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then

Name: If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then
Brand: Quizplus
Rating: 4.7 (46 reviews)

Question

Quizplus · Accepted Answer

If marginal revenue is greater than marginal cost, it means that the firm is gaining more revenue per unit than it is spending to produce that unit. Therefore, producing one more unit will increase profit since the additional revenue will exceed the additional cost.

If a Competitive Firm Is Currently Producing a Level of Output