Suppose a perfect competitive firm can increase its profits by increasing its ou

Question

Suppose a perfect competitive firm can increase its profits by increasing its output. Then it must be true the firm's: marginal cost exceeds its marginal revenue. price exceeds its marginal revenue. price exceeds its marginal cost, marginal revenue exceeds its price. If an economy moves from a point inside the production possibility curve to a point on the production possibility curve, it follows that: the economy was initially at full employment. the economy was initially allocating resources inefficiently. the economy is experiencing economic growth there must have been an increase in available resources. The monopolistically compete Arm represented he graph Is in:

Explanation / Answer

10. price exceeds its marginal cost. If firm will earn more than the cost of additional production then, firm will earn profit.

11. the economy was initially allocating resources inefficiently.

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