If a Price Searcher Is Producing at a Level of Output

Multiple Choice

If a price searcher is producing at a level of output such that its marginal cost is $5 and its marginal revenue is $3, the firm should

A) increase output in order to reduce per-unit costs.
B) decrease the price of its product and expand output.
C) increase price and reduce its rate of output.
D) reduce both price and output.