If a competitive firm's marginal profit is positive at an output of 1000 units,

Question

Quizplus · Accepted Answer

If a competitive firm's marginal profit is positive, it means that the revenue from selling an additional unit (marginal revenue, MR) is greater than the cost of producing that additional unit (marginal cost, MC). Therefore, the firm can increase its profit by producing more than the current output level, in this case, more than 1000 units.

If a Competitive Firm's Marginal Profit Is Positive at an Output