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Marginal Revenue, Marginal Cost , Maximum Profit Rule

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If a firm finds that its MR exceeds its MC, then the Maximum Profit rules require the firm to:

a) increase its output in perfect, but not necessarily imperfect competition

b) increase its output in imperfect, but not necessarily in perfect competition.

c) increase its output in both perfect and imperfect competition

d) decrease its output in both perfect and imperfect competition

e) do none of the above.

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A multiple choice question on marginal revenue, marginal cost and maximum profit rule has been answered and explained.

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Answer: c) increase its output in both perfect and imperfect ...

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