Under What Circumstances Will a Price-Taking Firm Tend to Expand

Under what circumstances will a price-taking firm tend to expand its output?

A) when its price exceeds average variable cost and its marginal revenue is less than the market price
B) when its price exceeds average variable cost and its marginal revenue is greater than the market price
C) when its price exceeds average variable cost and its marginal revenue is positive
D) when its price exceeds average variable cost and its marginal cost is less than the market price

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