1. A perfectly competitive firm is currently producing at a level of output where marginal revenue is greater than marginal cost (MR > MC). To maximize its total economic profit, what action should the firm take? (A) Shut down operations immediately to avoid future losses. (B) Increase its production output until marginal revenue equals marginal cost. (C) Decrease its production output to raise the market price of its product. (D) Maintain its current production level because any change will reduce profit.