Consider a Firm That Operates in a Perfectly Competitive Market

Multiple Choice

Consider a firm that operates in a perfectly competitive market. Currently the firm is producing 300 units of output and the price is $20. If marginal cost at 300 units is $22, the firm

A) ​could increase profits by reducing output from 300 units.
B) ​could increase profits by increasing output from 300 units.
C) ​should decide to increase the price above $20.
D) ​should shut down, since it must be losing money.