Problem:
Task-It Basket is a firm with some market power. The firm produces and sells baskets for $50 each. At the current quantity of baskets, the firm's marginal revenue is $27 and marginal cost is $34. Task-It Basket should do which of the following to maximize its profits? Need Assignment Help?
(A) Produce fewer baskets because marginal revenue is less than marginal cost.
(B) Produce fewer baskets because marginal revenue is less than price.
(C) Produce fewer baskets because price is greater than marginal cost.
(D) Produce more baskets because price is greater than marginal cost.
(E) Produce more baskets because price is greater than marginal revenue.