Jerry's Quarry sells building stone in a perfectly competitive market. At its current level of building stone production, Jerry's Quarry has marginal costs equal to $45, and AVC is rising. If the market price of building stone is $50, Jerry's Quarry should:
A. decrease its level of building stone production.
B. continue producing its current level of production.
C. increase its production of building stone.
D. shut down and produce no building stone.
Answer: C
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