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2. Suppose a perfectly competitive firm's current output level is less than its profit-maximizing output level. The next unit produced a. will increase cost more than it increases revenue. b. will increase revenue more than it increases cost. c. will increase revenue without increasing cost. d. may or may not increase profit.

2. Suppose a perfectly competitive firm's current output level is less than its profit-maximizing output level. The next unit produced a. will increase cost more than it increases revenue. b. will increase revenue more than it increases cost. c. will increase revenue without increasing cost. d. may or may not increase profit.

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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2. Suppose a perfectly competitive firm's current output level is less than its profit-maximizing output level. The next unit produced a. will increase cost more than it increases revenue. b. will increase revenue more than it increases cost. c. will increase revenue without increasing cost. d. may or may not increase profit.
Transcribed Image Text:2. Suppose a perfectly competitive firm's current output level is less than its profit-maximizing output level. The next unit produced a. will increase cost more than it increases revenue. b. will increase revenue more than it increases cost. c. will increase revenue without increasing cost. d. may or may not increase profit.
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