Answer: b. decrease production to maximize profit.
Explanation:
Economic theory holds that to maximize profits, one should produce at a level where Marginal cost equals Marginal revenue. At this point, resources are being utilized fully but anything past this point will result in MC > MR.
This company is past that point of production which is why they are in their current predicament. To solve this, they should decrease production till they get to a point where Marginal Revenue = Marginal cost.
