A price-searcher firm will expand output until

A) marginal revenue falls to equal the rising marginal cost.
B) marginal revenue rises to equal the falling marginal cost.
C) marginal revenue falls below marginal cost.
D) marginal cost rises above marginal revenue.

Marginal Revenue

Incremental income earned by selling an additional unit of a good or service.

Marginal Cost

The rise in expenses associated with the production of an extra unit of a product or service.

Price-searcher Firm

A company that determines the price of its products based on demand and supply conditions rather than prevailing market prices.