If the market price is $2 and a perfectly competitive firm is producing 1,000 units and the marginal cost to produce the 1,000th unit is $2, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive.
B) The firm is not maximizing profit.
C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative.
D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is zero.
D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is zero.
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