Table 81 Table 8

Multiple Choice

Table 8.1 Table 8.1 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 8.1.Suppose the fixed cost of production rises by $500 and the price per unit is still $8.What happens to the firm's profit-maximising 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.