I Suppose the market for air conditioners is perfectly competitive. Also suppose a firm that produces air conditioners has an average total cost of $500 when producing 50 units. The xed cost is $400, and the average total cost of 51 units is $510. If the market price for an air conditioner is $1000, this rm should 0 sell 101 units because its xed costs are so low. sell only 50 units because the marginal cost of the 51st exceeds marginal revenue. sell 101 units because it adds to prots. sell 101 units because price is greater than average total costs. 000