Pappy's Popcorn Emporium Operates in a Perfectly Competitive Industry and Hires

Multiple Choice

Pappy's Popcorn Emporium operates in a perfectly competitive industry and hires you as an economic consultant. Pappy's is currently producing at a point where market price equals its marginal cost. Its total revenue exceeds both its total variable cost and its total cost. You advise Pappy's to

A) cease production immediately because it is incurring a loss.
B) raise its price so that it can increase its profit.
C) continue to produce in the short run to maximize its profit.
D) lower its price immediately in anticipation of new firms entering the industry.