If a firm is producing where its smc price and the lmc is


If a firm is producing where its SMC = price and the LMC is less that LAC, then it would do better in the long run by

a. increasing output with its existing plant until LMC equals price.

b. increasing plant size until LMC and SMC are identical and equal to price.

c. decreasing plant size until LAC, SAC, and price are equal.

d. doing nothing because it is already at the long-run profit maximizing point

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Macroeconomics: If a firm is producing where its smc price and the lmc is
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