If a firm in a perfectly competitive market is producing at a level of output where marginal costs are less than marginal revenue, the firm's profit:

Name: If a firm in a perfectly competitive market is producing at a level of output where marginal costs are less than marginal revenue, the firm's profit:
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Question

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When marginal costs are less than marginal revenue, increasing production will increase the firm's profit because each additional unit produced adds more to revenue than it does to costs.

If a Firm in a Perfectly Competitive Market Is Producing