-Tammy Sells Woolen Hats in a Perfectly Competitive Market

Multiple Choice

-Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is $24. The marginal cost of producing a second hat is $26 and the marginal cost of producing a third hat is $28. The market price of a hat is $26. To maximize profit, Tammy produces ________ per day.

A) 1 hat
B) 3 hats
C) 2 hats
D) as many hats as possible