Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of output. If the marginal cost of producing the 10th unit is $14, to maximise its profit the firm should
A) increase the price it charges for its product.
B) shut down.
C) increase its production.
D) decrease its production.
E) do nothing because it is already maximising its profit.
Correct Answer:
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