Henry,a perfectly competitive lime grower in Southern California,notices that the market price of limes is greater than his marginal cost.What should Henry do?

Question

Quizplus · Accepted Answer

Since the market price is greater than Henry's marginal cost, he should continue to produce and sell his limes where marginal revenue equals marginal cost. By expanding his output, he can increase his profits as long as the marginal revenue is still greater than the marginal cost.

Henry,a Perfectly Competitive Lime Grower in Southern California,notices That the Market