If the market price is $3 and a perfectly competitive firm is producing 2,200 units and the marginal cost to produce the 2,200th unit is $2.85, which of the following is true?
A) The firm is maximizing profit.
B) The difference between marginal revenue and marginal cost (MR - MC) for the 2,200th unit is negative.
C) The firm should decrease production to maximize profit.
D) The firm should increase production to maximize profit.
Correct Answer:
Verified
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