If a Representative Firm with Total Cost Given by TC

Multiple Choice

If a representative firm with total cost given by TC = 20 + 20q + 5q² operates in a competitive industry where the short-run market demand and supply curves are given by Q_D = 1,400 - 40P and Q_S = -400 + 20P,its short-run profit-maximizing level of output is:

A) 0 units.
B) 1 unit.
C) 2 units.
D) 4 units.
E) 6 units.