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Sagot :
In order to sell additional units of their products, competitive firms must increase output. Thus the correct option is A.
What are competitive firms?
A perfective competitive market allows balanced selling prices for its products. If a business is competitive but will fail to generate any sales if it seeks to charge even a small premium over the going rate.
When the additional unit of products is sold then the firm received marginal profit. So in order to sell the additional units of their products, competitive firms must increase their output.
When firms increase their output, it means that total cost will also rise along with the revenue. This increased output will help in increasing the profit of the organization.
Therefore, option A Increase output is the appropriate answer.
Learn more about competitive firms, here:
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