单选题

A firm in a perfectly competitive environment has its total costs equal to total revenue and marginal costs greater than marginal revenue. Given this, which of the following strategies is most appropriate? The firm should:

A、 shut down in the short run and exit in the long run
B、 increase its level of production to enter profit territory
C、 decrease its level of production to enter profit territory

【正确答案】 C

【答案解析】

C is correct. A firm in a perfectly competitive environment with total costs equal to total revenue and marginal costs greater than marginal revenue is operating at the upper breakeven point. Therefore, it should decrease the level of production to enter profit territory.