If a perfectly competitive firm is producing 1,500 units and, at the 1,500th unit, the difference between marginal revenue and marginal cost (MR - MC) is negative, which of the following is true?
A) The firm should decrease production to maximize profit.
B) The 1,500th unit costs less to produce than the firm earns in revenue.
C) The firm is maximizing profit.
D) The firm should increase production to maximize profit.
Correct Answer:
Verified
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