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If a perfectly competitive firms marginal revenue is greater than its marginal cost, the firm O A. must be making an economi
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Answer : the firm will increase its output to increase economic profit.

When marginal revenue is greater than marginal cost, the firm can increase the output to increase the profit. If marginal revenue is less than marginal cost, then the firm should reduce its output production to increase the profit. At equilibrium, the marginal revenue equals marginal cost which is the profit maximising point.

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