The next question refers to the following:
Total cost schedule for a competitive firm:
Output Total Cost
0 $ 10
1 60
2 80
3 110
4 165
5 245
If market price is $60, how many units of output will the firm produce?
a. Zero units of output because the firm shuts down.
b. 1 unit of output.
c. 2 units of output.
d. 3 units of output.
e. None of the above.