QUESTION 4In a situation where a perfectly competitive firm is producing at a level of quantity where their marginal revenue is greater than their marginal costO then they should increase the quantity they are producing and selling currently. This will help them to increase their profits.O then they should deccrease the quantity they are producing and selling currently. This will help them to increase their profits.then they should keep the quantity they are producing and selling currently as constant. This will help them to increase their profits.O then no further action is required on their part as it is a perfect condition for them. QUESTION 13To find out the profit maximizing quantity we look at the level of quantity whereO marginal revenue > marginal cost.marginal revenue < marginal cost.marginal revenue = marginal cost.O marginal revenue and marginal cost are equal to 1.

Question 4 : The correct option is C that is then they should keep the quantity they are producing…

QUESTION 13 To find out the profit maximizing quantity we look at the level of quantity where O marginal revenue > marginal cost. marginal revenue < marginal cost. marginal revenue - marginal cost. O marginal revenue and marginal cost are equal to 1.

QUESTION 13 To find out the profit maximizing quantity we look at the level of quantity where O marginal revenue > marginal cost. marginal revenue < marginal cost. marginal revenue - marginal cost. O marginal revenue and marginal cost are equal to 1.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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