A firm sells a product in a purely competitive market.The marginal cost of the product at the current output of 500 units is $1.50.The average variable cost is $1.00.The market price of the product is $1.25.To maximize profits or minimize losses, the firm should
A)continue producing 500 units.
B)continue production, but produce less than 500 units.
C)increase production to more than 500 units.
D)shut down.

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The Answer of A firm sells a product in a purely competitive market.The marginal cost of the product at the current output of 500 units is $1.50.The average variable cost is $1.00.The market price of the product is $1.25.To maximize profits or minimize losses, the firm should
A)continue producing 500 units.
B)continue production, but produce less than 500 units.
C)increase production to more than 500 units.
D)shut down.

A Firm Sells a Product in a Purely Competitive Market