\begin{tabular}{l} In the short run, if the marginal cost is less than the marginal revenue, \\ the firm should ___ output to__ its profit. \\ \hline OA) increase; raise \\ OB) not change; raise \\ OC) decrease; raise \end{tabular}

To solve this problem, we need to understand the relationship between marginal cost (MC), marginal revenue (MR), and profit maximization in a firm. 1. **Marginal Cost (MC)**: This is the cost of producing one additional unit of output. 2. **Marginal Revenue (MR)**: This is the additional revenue generated from selling one more unit of output. 3. **Profit Maximization**: A firm maximizes its profit when it produces up to the point where MR equals MC. If MR is greater than MC, the firm can increase its profit by producing more output. Now, let's analyze the options given: - **If MC < MR**: This means that the revenue from selling an additional unit is greater than the cost of producing that unit. Therefore, the firm should increase its output to raise its profit. Now, let's evaluate the options: - **OA) increase; raise**: This option suggests that the firm should increase output to raise its profit. This is correct. - **OB) not change; raise**: This option suggests that the firm should not change output but still raise profit, which is incorrect because increasing output is necessary to raise profit when MC < MR. - **OC) decrease; raise**: This option suggests that the firm should decrease output to raise profit, which is also incorrect. Based on this analysis, the correct answer is: **OA) increase; raise**.