Under perfect competition, a firm will increase output if marginal cost is less than price.

Name: Under perfect competition, a firm will increase output if marginal cost is less than price.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

In perfect competition, firms will increase output as long as the marginal cost (MC) of producing an additional unit is less than the price they can sell it for, since this means producing the additional unit will increase their profit.

Under Perfect Competition, a Firm Will Increase Output If Marginal