Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 8 - Pure Competition in the Short Run - Quick Quiz for Figure 8.3 - Page 170: 2

Answer

A. MR exceeds MC, and the firm should expand its output.

Work Step by Step

At 7 units, the MR is 131 whereas the MC is 100, which means that MR exceeds MC by $31. Hence, option A is true.
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