If a firm's marginal revenue is greater than marginal cost at its current level of production, the firm should:
A) increase output in perfect competition, but decrease output in the other types of competition.
B) decrease output in perfect competition but increase output in the other types of competition.
C) decrease output regardless of the type of competition.
D) increase output regardless of the type of competition.

Question

Quizplus · Accepted Answer

When marginal revenue is greater than marginal cost, the firm can increase its profit by increasing output, regardless of the type of competition.

If a Firm's Marginal Revenue Is Greater Than Marginal Cost