If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit product and the price it can charge for its A. decreases; falls B. decreases; rises C. increases; does not change D. decreases; does not change O E. increases; falls

If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit product and the price it can charge for its A. decreases; falls B. decreases; rises C. increases; does not change D. decreases; does not change O E. increases; falls

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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Question

If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit
product
and the price it can charge for its
O A. decreases; falls
O B. decreases; rises
O C. increases; does not change
D. decreases; does not change
O E. increases; falls

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