Suppose ABC Corp. is a firm producing newsprint in a perfectly competitive industry. We have the following information about the firm's production:
- Output (Q) = 1500 tonnes per month
- Average total cost (ATC) = $627 per tonne
- Average variable cost (AVC) = $614 per tonne
- Marginal revenue (MR) = $620 per tonne
- Marginal cost (MC) = $620 per tonne
At the current level of output, this firm is ________ profit and is earning economic profit of________ per month.
A) not maximizing; -$9000
B) maximizing; $10 500
C) not maximizing; -$10 500
D) maximizing; -$10 500
E) maximizing; $9000