Nadia operates a frame shop and charges the perfectly competitive price of $65 for custom framing of a standard size picture. She is a price-taking producer. To maximize her profit, Nadia will:
a. accept framing orders up until the point where the marginal cost of doing so is $65.
b. seek to produce at the point where her average variable cost is $65.
c. seek to operate at the minimum point on her average variable cost curve.
d. seek to operate at the minimum point on her marginal cost curve.
Ans: a. accept framing orders up until the point where the marginal cost of doing so is $65.
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