Multiple Choice
A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will
A) rise and its total variable cost will rise even more.
B) fall and its total variable cost will fall, but not by as much.
C) rise and its total variable cost will rise, but not by as much.
D) fall but its total variable cost will rise.
Correct Answer:
Verified
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