Jerry's Jellybean Factory produces 2,000 kilograms of jellybeans per month and sells them in a perfectly competitive market. The marginal cost is $3 per kilogram, the average variable cost is $2 per kilogram, and the beans sell for $4 per kilogram. Jerry
A) could increase his profit by producing fewer beans.
B) is maximising profit.
C) could increase his profit by producing more beans.
D) is incurring an economic loss and should shut down.
E) could increase his profit by raising the price of his beans.
Correct Answer:
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