Assume that at the current level of output produced by a perfectly competitive firm,MR = $7.50 and MC = $6.In order to maximize its profit,the firm should increase output.

Question

Quizplus · Accepted Answer

At the current level of output, the marginal revenue (MR) is greater than the marginal cost (MC), indicating that the firm can still increase its profit by producing and selling more units. This is because each additional unit produced will bring in more revenue than it costs to produce. Therefore, the firm should increase output to maximize its profit.

Assume That at the Current Level of Output Produced by a Perfectly