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Economics

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.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9464615

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