In which of the following situations will a perfectly competitive firm's profit always increase when it increases its output?

Question

Quizplus · Accepted Answer

A perfectly competitive firm's profit will always increase when it increases its output as long as the price is greater than the marginal cost. This is because the firm's marginal revenue will be greater than its marginal cost, resulting in an increase in profit. When the price is less than or equal to the marginal cost, the firm will experience losses, and when the price is less than the marginal revenue, the firm will not maximize its profit by increasing its output.

In Which of the Following Situations Will a Perfectly Competitive