If marginal revenue is 10 and marginal costs is 8 the firm should increase its output.?

Yes, if marginal revenue (MR) is 10 and marginal costs (MC) are 8, the firm should increase its output. This is because the additional revenue generated from selling one more unit (MR) exceeds the additional cost incurred to produce that unit (MC). By increasing output, the firm will continue to maximize its profit until MR equals MC. Thus, producing more units will enhance overall profitability.