If, for the last unit of a good produced by a perfectly competitive firm, MR MC, then in producing that unit the firm

Name: If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing that unit the firm
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Question

If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing that unit the firm

Quizplus · Accepted Answer

When MR (Marginal Revenue) is greater than MC (Marginal Cost), producing that unit adds more to total revenue than it does to total costs, indicating that the firm can increase its profit by producing more of that good.

If, for the Last Unit of a Good Produced by a Perfectly