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If a Firm in a Competitive Price-Searcher Market Finds That

Question 194

Multiple Choice

If a firm in a competitive price-searcher market finds that its marginal cost exceeds its marginal revenue at the current rate of output, it should


A) raise the price of the product and expand its output.
B) raise the price of the product and reduce its output.
C) lower the price of the product and expand its output.
D) lower the price of the product and reduce its output.

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