A profit maximizing firm in a competitive industry should ________ when marginal costs are falling.
reduce output
reduce prices
maintain output levels on the downwards sloping portion of the marginal cost curve
raise output until marginal costs are equal to marginal revenue

When the firm is profit maximizing and operates in a competitive environment, it should raise output until the point where marginal costs of firm is equal to the marginal revenue if marginal costs are falling.

As this will cover firm's more costs from producing more output. At a point where the marginal cost is equal to the marginal revenue, firm is maximizing its profit.

A profit maximizing firm in a competitive industry should ________ when marginal costs are falling. reduce output reduce prices maintain output levels on the downwards sloping portion of the marginal cost curve raise output until marginal costs are equal to marginal revenue

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A profit maximizing firm in a competitive industry should ________ when marginal costs are falling.
reduce output
reduce prices
maintain output levels on the downwards sloping portion of the marginal cost curve
raise output until marginal costs are equal to marginal revenue