Problem
At a price of $5, the profit-maximizing output for a perfectly competitive firm is 1000 units per year. If the average total cost is $3 per unit, what will be the firm's profit? If the average total cost is $6 per unit, what will be the firm's profit? What is the relationship between profit, price, and average total cost?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.