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Answer to Question #227677 in Economics for Karabo
Question #227677
If a perfectly competitive firm’s marginal cost is greater than its marginal revenue at its current level of production, what must the firm do to increase its profit?
Expert's answer
If a perfectly competitive firm’s marginal cost is greater than its marginal revenue at its current level of production, then the firm must decrease production to increase and maximize its profit, until MR = MC.
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#340153 on Dec 2023
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