Question: 2. Explain in details whether the underlined part of statement is true or false. (4pts.) In perfectly competitive markets, for any level of output, as

2. Explain in details whether the underlined part of statement is true or false. (4pts.)

In perfectly competitive markets, for any level of output, as long as marginal cost of production is higher than the marginal revenue, firms should increase the quantity of outputs produced to maximize (minimize) their profits (losses).

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