Answer:
b. decrease production
Explanation:
Profit is maximised when marginal revenue is equal to marginal cost.
Marcy's marginal cost is greater than marginal revenue, thus to maximise profit, Marcy should decrease production. If production is decreased, marginal cost would fall. She should reduce production up to the point marginal cost equals marginal revenue.
Marcy operates in a competitive market ,thus if she increases price, she would not be able to get customers.
I hope my answer helps you
