Assume that the two firms A and B are in two isolated markets. The total cost functions of both firms are shown below:

Firm A's total costs = $(150 + 5Q)

Firm B's total costs = $(100 + 5Q)

where Q is the quantity produced.

Suppose that both firms face the same demand function, that they are both pursuing a profit maximization policy, and that both firms are earning positive economic profits. Compared with firm A, firm B produce __________, and have __________ profits and __________ producer surplus.

Select one:

a.the same quantity; higher; the same size of

b.more; higher; larger

c.the same quantity; the same amount of; the same size of

d.Not enough information to answer this question.

e.less; lower; smaller