When the marginal cost of a price-taker firm is more than the market price of its product, the firm should

A) expand output.
B) reduce output.
C) maintain output.
D) charge more than the market price.

Marginal Cost

The expense involved in manufacturing an extra unit of a good or service.

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the marketplace.

Price-Taker Firm

A company that has no control over the market price and must accept the prevailing market price for its product or service.