Refer to the data provided in Table 9.4 below to answer the question(s) that follow.
 Table 9.4qTFCTVCTCMCAVCATC0$100  $0$100  ----  --  11004014040  40  140  21006016020  30   80  31009019030  30    63.334100124  224  343156  5100180  280  56  36  56  6100  264    364  84  44    60.677100  372    472  108  53.14  67.42Refer to Table 9.4. The market price is $84 and this firm is producing four units of output. Which of the following would you recommend to this firm?

A. Increase output to seven units so that price is less than marginal cost.
B. Continue producing four units of output, because the firm is able to make an economic profit.
C. Increase output to six units, so that marginal cost equals marginal revenue.
D. Reduce price to $34, so that marginal cost will equal marginal revenue at 4 units of output.


Answer: C

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