The decreasing portion of a firm's long run average cost curve is attributable to:

An increase in autonomous investment in a small open economy will cause ________

A) a trade surplus to shrink B) a trade deficit to increase C) lower net capital outflows D) all of the above E) none of the above

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

a. lower the price b. raise the price c. increase output d. reduce output e. maintain its current rate of output