Question

If a perfectly competitive firm is producing a quantity where MC > MR, then profit: Group of answer choices is maximized. can be increased by increasing production. can be increased by decreasing production. can be increased by decreasing the price.

Answer 1

The answer is "Option C".

Step-by-step explanation:

Please find the complete question in the attached file.

A fully competing company can enhance profits by increasing production levels when marginal income is more than marginal cost. If MR > MC It means the company produces too little by generating an additional amount of good, which can generate income, to increase its output, and produce MR = MC only at the point when it produces and as in competition with perfect MR = price level. The business is going to increase production until MR = MC = price and revenue is optimum.