Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:.
A. lower its price.
B. decrease production.
C. increase production.
D. raise its price.

correct option C. increase production.

Explanation:

given data

producing  = 37 units  

marginal cost MC = $3  

sell MR = $5  

solution

the profit is maximum at MR = MC   1

and here MR = $5 and MC = $3

then production should be increased up to the  MC = MR = $5

so correct option is C. increase production

a

explanation:

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough