Table $12-1$

Quantity Total Cost

$($dollars$)$ Variable Cost

$($dollars$)$

$0$ $$1,000$ $$0$

$1001,360360$

$2001,560560$

$3001,960960$

$4002,7601,760$

$5004,0003,000$

$6005,8004,800$

Table $12-1$ shows the short$-$run cost data of a perfectly competitive firm that produces plastic camera cases. In perfect competition, marginal revenue $($MR$)$ is always equal to the market price. Assume that output can only be increased in batches of $100$ units.

$4)$ Refer to Table $12-1.$ If the market price of each camera case is $$8,$ what is the profit$-$maximizing quantity?

A$)300$ units

B$)400$ units

C$)500$ units

D$)600$ units

Answer: B