If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold,what should the farm do to maximise its profit?
A) Determine what the total revenue and total cost of production are
B) Increase output
C) Decrease output
D) Lower its price to sell more

Question

Quizplus · Accepted Answer

When the marginal revenue exceeds the marginal cost, it means that the farm can still earn additional profit by producing and selling more apples. Therefore, the best choice is to increase output to maximise profit.

If a Perfectly Competitive Apple Farm's Marginal Revenue Exceeds the Marginal