Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store it must

Refer to the figure above. What is the optimal number of machines rented if the market rental price is $8 per month?

A) 20 machines B) 40 machines C) 160 machines D) 180 machines

A perfectly competitive firm is selling 300 units of output at $4 each. At this output level, total fixed cost is $100 and total variable cost is $500. The firm

A) is maximizing its profit. B) is earning a profit, but not necessarily the maximum profit. C) is experiencing an economic loss. D) should shut down.