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Jazzmine Aigle
on Nov 27, 2024

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If a purely competitive firm is producing a level of output where the marginal revenue is less than the marginal cost, then its profits must be negative.

Marginal Revenue

The incremental revenue procured by selling an extra unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product or service, crucial for pricing and production decisions.

Purely Competitive Firm

A business operating in a market where there are many buyers and sellers of a homogeneous product with no single entity able to influence the market price.

  • Grasp approaches to achieving the highest profitability and reducing losses in firms operating within competitive industries.
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Alexie MorontaNov 28, 2024
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