if-a-firms-marginal-cost-exceeds-its-marginal-revenue-at-the-current-level-of-pr

Question

If a firm's marginal cost exceeds its marginal revenue at the current level of production, what should the firm do to optimize its production?

Accepted Answer

Reduce production until marginal cost equals marginal revenue.

Answer

Shut down production immediately.

Answer

Increase production to spread fixed costs over more units.

Answer

Maintain current production to avoid losses.