Suppose a Perfectly Competitive Firm Is Producing 77 Units of Output

Multiple Choice

Suppose a perfectly competitive firm is producing 77 units of output, and the marginal cost of the 77ᵗʰ unit is 11. If the firm can sell each unit of output for $8 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.