If a firm in a perfectly competitive market is producing at a level of output where marginal costs exceed marginal revenue,its profits:

Name: If a firm in a perfectly competitive market is producing at a level of output where marginal costs exceed marginal revenue,its profits:
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, if marginal costs exceed marginal revenue, reducing output will increase profits because the firm is producing too much and incurring higher costs than the revenue generated.

If a Firm in a Perfectly Competitive Market Is Producing