Scenario 14-2

Assume a perfectly competitive firm is producing 100 units of output (so Q = 100). At Q = 100, the firm'saverage total cost equals $15, average variable cost equals $11. The firm's marginal cost of producing the 100th unit of output equals $13. The firm'smarginal revenue from selling the 100th unit of output equals $22.

Refer to Scenario 14-2. At Q = 100, the firm's profit amounts to

a. $200.

b. $400.

c. $700.

d. $2,200.