Jennifer's Bakery Shop produces baked goods in a perfectly competitive market. If Jennifer decides to produce her 100th batch of cookies, the marginal cost is $120. She can sell this batch of cookies at a market price of $110. To maximise her profit, Jennifer should
A) shut down.
B) charge $120 for this batch.
C) not produce this additional batch.
D) produce this batch of cookies because its MR exceeds its MC.
E) produce this batch of cookies because it will help lower her average fixed cost.
Correct Answer:
Verified
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