Table 12-1 Table 12-1 Shows the Short-Run Cost Data of a Perfectly

Multiple Choice

Table 12-1

Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
-Refer to Table 12-1.Suppose the fixed cost of production rises by $500 and the price per unit is still $8.What happens to the firm's profit-maximizing output level?

A) It must fall.
B) It must rise to offset the increased cost.
C) It will remain the same.
D) The firm will shut down.