Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. At Q=500, the firm's profits equal

A) $1,000.
B) $4,000.
C) $7,000.
D) $10,000.