If You Were the Owner of a Price-Taker Firm Operating

Multiple Choice

If you were the owner of a price-taker firm operating at an output level where the marginal cost of producing another unit was $5, and the market price was $7, then you

A) could increase your profit by expanding output.
B) could increase your profit by decreasing output.
C) are maximizing your profit at your current output level.
D) will be able to earn positive economic profits in the long run.