If a price searcher is producing at a level of output such that its marginal cost is $5 and its marginal revenue is $3, the firm should

Name: If a price searcher is producing at a level of output such that its marginal cost is $5 and its marginal revenue is $3, the firm should
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Question

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The firm should increase price and reduce output because marginal cost ($5) is greater than marginal revenue ($3), indicating that the firm is producing too much and should reduce output to maximize profit.

If a Price Searcher Is Producing at a Level of Output