Degree's, a Frozen Food Producer, Is a Monopolistically Competitive Firm

Degree's, a frozen food producer, is a monopolistically competitive firm. Degree's is currently selling frozen chips at a price of $3. Degree's marginal cost is 50 cents and marginal revenue is 50 cents. This firm should __________ to maximise profits.

A) decrease output so that marginal revenue exceeds marginal cost
B) increase output until price equals marginal cost
C) decrease output until price equals marginal cost
D) continue to produce the same output level