If MR MC for a competitive firm, it should reduce its level of output in order to make MR equal to MC.

Name: If MR > MC for a competitive firm, it should reduce its level of output in order to make MR equal to MC.
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Question

If MR > MC for a competitive firm, it should reduce its level of output in order to make MR equal to MC.

Quizplus · Accepted Answer

A competitive firm should increase its level of output when MR > MC to maximize profit, as producing more will increase total revenue more than total cost until MR = MC.

If MR > MC for a Competitive Firm, It Should