If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?

Question

Quizplus · Accepted Answer

Since marginal revenue exceeds the marginal cost of the last bushel of apples sold, the farm should increase its output until MR=MC. This will allow the farm to increase its profit as long as the additional revenue from selling the extra bushel is greater than the additional cost of producing it.

If a Perfectly Competitive Apple Farm's Marginal Revenue Exceeds the Marginal