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Suppose a perfectly competitive firm is producing a level of output at which MR < MC. What will happen as the firm moves to its

  1. Suppose a perfectly competitive firm is producing a level of output at which MR < MC.

What will happen as the firm moves to its profit-maximizing equilibrium?

  1. Marginal revenue will rise.
  2. Marginal revenue will fall.
  3. Marginal cost will rise.
  4. Marginal cost will fall.

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