If marginal cost exceeds marginal revenue for a perfectly competitive firm, it can maximize total profits by

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When marginal cost exceeds marginal revenue, a perfectly competitive firm can maximize total profits by decreasing output. This adjustment ensures that the firm produces up to the point where marginal cost equals marginal revenue, which is the profit-maximizing condition for firms in perfect competition.

If Marginal Cost Exceeds Marginal Revenue for a Perfectly Competitive