As the marginal revenue curve moves upward the perfectly competitive firm will:
A) change the selection of products it offers to the customers.
B) change its output and will be able to charge a higher price.
C) change its output but will not be able to change the price.
D) change its price and will not change its output.

Question

Quizplus · Accepted Answer

As the marginal revenue curve moves upward, the perfectly competitive firm will change its output and will be able to charge a higher price. This is because the marginal revenue curve represents the additional revenue that the firm will receive from selling one more unit of output. If the marginal revenue curve is moving upward, it means that the firm is able to sell more units of output at a higher price.

As the Marginal Revenue Curve Moves Upward the Perfectly Competitive