If the market price is $3 and a perfectly competitive firm is producing 1,200 units and the marginal cost to produce the 1,200th unit is $4.53, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is positive.
B) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is negative.
C) The firm should increase production to maximize profit.
D) The firm is maximizing profit.
B) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is negative.
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