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Scrat [10]
1 year ago
11

if a perfectly competitive firm is producing a quantity where mc < mr, then profit: select one: a. can be increased by decrea

sing the price. b. is maximized.
Business
1 answer:
iris [78.8K]1 year ago
8 0

If a perfect competition firm is producing a quantity where mc < mr, then profit can be increased by increasing production.

Because competing businesses compel them to adopt the market's current equilibrium price, a perfectly competitive firm is referred to as a price taker. A company will forfeit all of its sales to rivals if it increases the price of its product by even a penny in a highly competitive market.

There are numerous buyers and sellers in a market with perfect competition, and prices always reflect supply and demand. The businesses can enhance profit by raising output if it is producing at a level where MR > MC, such as 40 or 50 packs of raspberries. This is because the marginal revenue is higher than the marginal cost

Learn more about perfect competition here:

brainly.com/question/28325480

#SPJ4

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