False.
As the manager of a firm, you should increase output until marginal revenue equals marginal cost, not reduce it.
When marginal revenue equals marginal cost, it means that the additional revenue earned from producing one more unit is exactly equal to the additional cost of producing that unit. This is the point where the firm is maximizing its profit.
If marginal revenue is greater than marginal cost, the firm should produce more units because each additional unit will add more to revenue than to cost, increasing profit.
If marginal cost is greater than marginal revenue, the firm should produce fewer units because each additional unit will add more to cost than to revenue, decreasing profit.
In the given scenario, since the marginal cost of producing a unit is higher than the marginal revenue earned from that unit, the firm should reduce output until marginal revenue equals marginal cost to maximize profit.