Suppose that in a perfectly competitive industry, the market price of the product is $27. A firm is producing the output level at which average total cost equals marginal cost, both of which are $25. Average variable cost is $23. To maximize profits in the short run, the firm should
A) leave its output unchanged.
B) increase its output.
C) shut down.
D) reduce its output.
E) change the price of the product.

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The Answer of Suppose that in a perfectly competitive industry, the market price of the product is $27. A firm is producing the output level at which average total cost equals marginal cost, both of which are $25. Average variable cost is $23. To maximize profits in the short run, the firm should
A) leave its output unchanged.
B) increase its output.
C) shut down.
D) reduce its output.
E) change the price of the product.

Suppose That in a Perfectly Competitive Industry, the Market Price