If a firm operating in monopolistic competition is producing a quantity at which MC < MR,then profit can be _____ by _____.

A) increased;decreasing production
B) increased;increasing production
C) increased;increasing the price
D) maximized;decreasing production

Marginal Decision Rule

A strategy in economics where decisions are made based on the additional benefits and costs of a small change in the production or consumption.

MC < MR

A condition where marginal cost is less than marginal revenue, suggesting that increasing production can lead to higher profits.

Monopolistic Competition

A commercial structure with several businesses marketing similar yet distinct products, which gives them a bit of power within the market.