Suppose a Perfectly Competitive Firm Is Producing 37 Units Output

Multiple Choice

Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37ᵗʰ unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:

A) lower its price.
B) decrease production.
C) increase production.
D) raise its price.