A firm is considering decreasing production. The current price is \$15, marginal cost is \$18, and marginal revenue is \$15. Should the firm decrease production?

• A. Yes, because marginal revenue is less than price.
• B. No, because marginal cost is equal to price.
• C. No, because marginal revenue is greater than price.
• D. Yes, because marginal cost is greater than marginal revenue.

Answer: (D)