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At Its Present Rate of Output, Barrel O' Biscuits, a Perfectly

Question 221

Multiple Choice

At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its marginal revenue and price exceeds average variable cost.To maximize profit, the firm should


A) lower the price
B) raise the price
C) increase output
D) reduce output
E) maintain its current rate of output

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