A perfectly competitive firm is presently producing at an output level where its marginal cost is greater than both its average total cost and the market price. If the firm were to maximise profit, what would happen to price and output?
- Aeffect on output decrease; effect on price increase
- Beffect on output decrease; effect on price unchanged
- Ceffect on output increase; effect on price decrease
- Deffect on output increase; effect on price unchanged