Scenario 14-2 Assume a Certain Firm Is Producing Q = 1,000 Units

Multiple Choice

Scenario 14-2
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit.
-Refer to Scenario 14-2. 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.