If a firm in a competitive price-searcher market finds that its marginal cost exceeds its marginal revenue at the current rate of output, it should

A) raise the price of the product and expand its output.
B) raise the price of the product and reduce its output.
C) lower the price of the product and expand its output.
D) lower the price of the product and reduce its output.

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Competitive Price-searcher

A market participant that actively seeks out and compares prices in order to find and exploit competitive price advantages.