A purely competitive firm is producing at the point where its marginal cost equals the price of its product. If the firm increases its output, then total revenue will

A) increase and profits will increase.
B) decrease and profits will increase.
C) increase and profits will decrease.
D) decrease and profits will decrease.

Marginal Cost

The swell in cumulative expenditure due to the manufacture of an additional unit of a product or service.

Total Revenue

Total Revenue refers to the total receipts from sales of goods or services that is calculated by multiplying the price per unit by the number of units sold.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.