1) Suppose that ABC Industries, a perfectly competitive firm, currently produces 500 units of imitation ham spread for a total cost of $1,500. The marginal cost of the 500^th unit is $15, and the marginal revenue of the 500^th unit is $20. To maximize profits, ABC Industries should:

Group of answer choices

A.continue to produce 500 units.

B.produce more than 500 units.

C. stop producing at 500 units.

2)

The table given below shows the total fixed and variable costs of a firm. Table 8.3 Quantity of Output Total Fixed Cost Total Variable Cost $40 $30 12 $40 $44 13 $40 $60 $40 $80 15 $40 $110 16 $40 $150 7 $40 $200 18 $40 $280 Refer to Table 8.3. At what level of output does the average total cost starts increasing? O 1 unit O 6 units O 5 units O 7 units O 4 units