If a Perfectly Competitive Firm's Marginal Revenue Is Greater Than

question 105

Multiple Choice

If a perfectly competitive firm's marginal revenue is greater than its marginal cost,the firm

• A)cannot increase its economic profit.
• B)must be making an economic profit.
• C)will decrease its output to increase economic profit.
• D)will increase its output to increase economic profit.
• E)will lower the price.

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