Assuming a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then: a. a one-unit increase in output will increase the firm's profit.
In a situation where marginal revenue exceed marginal cost, this means that the large amount of good should be produced or manufactured.
And when marginal revenue does not exceed the marginal cost, lower amount of good should be produced.
Inconclusion a one-unit increase in output will increase the firm's profit.
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