Suppose That Carla's Candy Shop Finds That at the Current

Multiple Choice

Suppose that Carla's Candy Shop finds that at the current level of output,marginal revenue is below marginal cost and average variable cost is below price.If the market price is held constant,Carla's Candy Shop should __________ in order to maximize profits.

A) raise output
B) reduce its price
C) reduce output
D) close down
E) maintain its current output level