Question

when supply price increase in short term the profit of ᴩʀᴏᴅᴜᴄʀᴇ ​

Answer 1

• If a firm in a perfectly competitive market increases its output by 1 unit, it increases its total revenue by P × 1 = P. Hence, in a perfectly competitive market, the firm's marginal revenue is just equal to the market price, P. Short‐run profit maximization.