-As a perfectly competitive firm's output increases,its total revenue ________ and its total cost ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; increases

Question

-As a perfectly competitive firm's output increases,its total revenue ________ and its total cost ________.
A) increases; increases 
B) increases; decreases 
C) decreases; increases 
D) decreases; decreases 
E) does not change; increases

Quizplus · Accepted Answer

In a perfectly competitive market, as a firm increases its output, its total revenue increases because it sells more units of its product. Simultaneously, its total cost also increases due to the costs associated with producing additional units.

-As a Perfectly Competitive Firm's Output Increases,its Total Revenue ________