A firm that produces and distributes baked goods decides to produce more units of their frozen ice cream cakes once they experience an increase in demand for the cakes. Assuming it is a rational firm, choose the statement from below that is true. a. If the firm decides to lower the price of the cakes, the quantity demanded will decrease.
b. As long as the marginal cost exceeds marginal revenue, the firm will continue to produce the cakes.
c. As long as the marginal revenue exceeds the marginal cost, the firm will continue to produce the cakes.
d. The firm will earn a higher incremental profit for each additional cake that it produces.

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