If a firm in a competitive market increases production and its marginal revenue remains greater than its marginal cost, raising production will:

Question

Quizplus · Accepted Answer

If the firm's marginal revenue remains greater than its marginal cost, then producing more units will lead to additional revenue that exceeds the additional cost of producing those units. This means that the firm can earn a profit on the additional units produced, so increasing production will be profitable.

If a Firm in a Competitive Market Increases Production and Its