Scenario 14-1 Assume a Certain Firm in a Competitive Market Is Producing

Multiple Choice

Scenario 14-1
Assume a certain firm in a competitive market 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.
-Refer to Scenario 14-1. 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.