Assume a certain competitive price-taker firm 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.


C

Economics

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