A monopolistically competitive firm is producing at a short-run output level where average total cost is $10.00, marginal cost is $5.00, marginal revenue is $6.00, and price is $12.00. In the short run, the firm should:
A. make no change in the level of output.
B. increase the level of output.
C. decrease the level of output.
D. increase product price.
Answer: B
Economics
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