Consider a Perfectly Competitive Firm in the Following Position: Output

Multiple Choice

Consider a perfectly competitive firm in the following position: output = 4000,market price = $1,total fixed costs = $2000,total variable costs = $4500,and marginal cost = $1.To maximize profits the firm should

A) reduce its output.
B) expand its output.
C) produce zero output.
D) increase the market price.
E) not change its output.