17 assume a certain firm in a competitive market is

17 assume a certain firm in a competitive market is

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Reference no: EM13377344

17. Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

To maximize its profit, the firm should

a. increase its output.
b. continue to produce 1,000 units.
c. decrease its output but continue to produce.
d. shut down.

Reference no: EM13377344

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