Table 14-8
a Firm in a Competitive Market Has the Following

Multiple Choice

Table 14-8
A firm in a competitive market has the following cost structure.
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Average Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & - - \\\hline 1 & 10 \\\hline 2 & 8 \\\hline 3 & 7 \\\hline 4 & 8 \\\hline 5 & 10 \\\hline\end{array}$$
-Refer to Table 14-8. If the firm's fixed cost of production is $3, and the market price is $10, how many units should the firm produce to maximize profit?

A) 1 unit
B) 2 units
C) 3 units
D) 4 units