Suppose that a firm in a competitive market faces the following revenues and costs:

Marginal

Marginal

Quantity

Cost

Revenue

12

$5

$7.50

13

$6

$7.50

14

$7

$7.50

15

$8

$7.50

16

$9

$7.50

17

$10

$7.50

If the firm is currently producing 14 units, what would you advise the owners?

Question 17 options:

decrease quantity to 13 units

increase quantity to 16 units

increase quantity to 15 units

continue to operate at 14 units