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At Its Present Rate of Output,Barrel O' Biscuits,a Perfectly Competitive

Question 18

Multiple Choice

At its present rate of output,Barrel O' Biscuits,a perfectly competitive firm,finds that its marginal cost exceeds its marginal revenue and its price exceeds its average variable cost.To maximize profit,the firm should _____


A) lower the price.
B) increase the price.
C) increase output.
D) decrease output.
E) produce at its current level of output.

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