Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

42.Refer to the data above. At Q = 1,000, the firm's profits equal: [Write the dollar amount rounded to one cent and if negative, use the minus sign or brackets to indicate its sign.]

Answer:

43.Refer to the data above.At Q = 999, the firm's total costs equal: [Write the dollar amount rounded to one cent and if negative, use the minus sign or brackets to indicate its sign.]

Answer:

44.Refer to the data above.At Q = 999, the firm's profits equal: [Write the dollar amount rounded to one cent and if negative, use the minus sign or brackets to indicate its sign.]

Answer:

45.Refer to the data above.To maximize its profit, the firm should:

a.increase its output.

b.continue to produce 1,000 units.

c.decrease its output but continue to produce.

d.shut down.

e.Shut down in the short term and exit the industry in the long term.