Question

As output increases, marginal revenue_________ (decrease,increase, remains constant) but marginal cost increases. If marginal revenue exceeds marginal cost (if MR>MC),__________ (the extra revenue from selling one more unit exceeds the extra cost incurred to produce it, the extra revenue from selling one more unit equals the extra cost incurred to produce it, the extra cost incurred to produce it exceeds the extra revenue from selling one more unit). In this case, Economic profit increases if output increases.

The options are in parentheses.
Options that I tried:
decrease, the extra revenue from selling one more unit exceeds the extra cost incurred to produce it
decrease, the extra revenue from selling one more unit equals the extra cost incurred to produce it

Answer 1