A profit firm in a competitive industry should ________ when marginal costs are falling.
A) Reduce prices
B) Reduce output
C) Raise output until marginal costs are equal to marginal revenue
D) Maintain output levels on the downwards sloping portion of the marginal cost curve

According to my research on Macro Economics and Business Structures, I can say that the best thing to do when marginal costs are falling would be to Raise output until marginal costs are equal to marginal revenue. This is because you are able to produce the same amount of product for less value as marginal costs fall.

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A profit firm in a competitive industry should ________ when marginal costs are falling. A) Reduce prices B) Reduce output C) Raise output until marginal costs are equal to marginal revenue D) Maintain output levels on the downwards sloping portion of the marginal cost curve

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A profit firm in a competitive industry should ________ when marginal costs are falling.
A) Reduce prices
B) Reduce output
C) Raise output until marginal costs are equal to marginal revenue
D) Maintain output levels on the downwards sloping portion of the marginal cost curve