Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of output.If the marginal cost of producing the 10th unit is $14,to maximize its profit the firm should

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In a perfectly competitive market, a firm maximizes profit where marginal revenue (MR) equals marginal cost (MC). If the MC of producing the 10th unit ($14) is higher than the MR ($12), the firm should reduce production to lower costs and increase profit.

Suppose That a Perfectly Competitive Firm's Marginal Revenue Equals $12