When price is greater than marginal cost for a firm in acompetitive market. a. m

Question

When price is greater than marginal cost for a firm in acompetitive market. a. marginal cost must be falling. b. the firm must be minimizing it losses. c. there are opportunities to increase profit by increasingproduction d. the firm should decrease output to maximize profit. When price is greater than marginal cost for a firm in acompetitive market. a. marginal cost must be falling. b. the firm must be minimizing it losses. c. there are opportunities to increase profit by increasingproduction d. the firm should decrease output to maximize profit.

Explanation / Answer

When price is greater than marginal cost for a firm in acompetitive market. a. marginal cost must be falling. b. the firm must be minimizing it losses. c. there are opportunities to increaseprofit by increasing production d. the firm should decrease output to maximize profit. ~ Usually MR=Price, so when MR>MC, so there is definitelymore chances to increase profit by increase production to reachMR=MC

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