A Purely Competitive Firm's Output Is Currently Such That Its

question 140

Multiple Choice

A purely competitive firm's output is currently such that its marginal cost is $4 and marginal revenue is $5.Assuming profit maximization,the firm should:

• A) cut its price and raise its output.
• B) raise its price and cut output.
• C) leave price unchanged and raise output.
• D) leave price unchanged and cut output.