A perfectly competitive small organic farm that produces 1,000 cauliflower heads in the short run has an ATC = $6 and AFC = $2.The market price is $3 per head and is equal to MC.In order to maximize profits (or minimize losses), this farm should:
A.increase output.
B.reduce output but continue to produce a positive amount of output.
C.shut down.
D.do nothing; the firm is already maximizing profits.

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The Answer of A perfectly competitive small organic farm that produces 1,000 cauliflower heads in the short run has an ATC = $6 and AFC = $2.The market price is $3 per head and is equal to MC.In order to maximize profits (or minimize losses), this farm should:
A.increase output.
B.reduce output but continue to produce a positive amount of output.
C.shut down.
D.do nothing; the firm is already maximizing profits.

A Perfectly Competitive Small Organic Farm That Produces 1,000 Cauliflower