Transcribed Image Text:A perfectly competitive firm produces at an output at which marginal revenue is less than marginal cost. To maximize profit, the firm
should:
O produce more.
O maintain its level of output.
O produce less.
www.
If the price of output decreases, the firm’s optimal level of output will increase
(Click to select)
increase
***
stay the same
decrease
Saved
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should:
O produce more.
O maintain its level of output.
O produce less.
www.
If the price of output decreases, the firm’s optimal level of output will increase
(Click to select)
increase
***
stay the same
decrease
Saved
K
