Answer:
C) increase production.
Explanation:
Competitive firms maximize their accounting profits when marginal revenue (MR) = marginal cost (MC).
In a perfectly competitive market, all the producers and the consumers are price takers, so they cannot change the price of the goods. So changing the sales price is not possible. Since the marginal revenue is greater than the marginal cost, the firm should increase its production output until MR = MC.
