(Solved): Refer to the diagram to the right. Suppose the prevailing price is $20 and the firm is currently ...

Refer to the diagram to the right. Suppose the prevailing price is $\$20$ and the firm is currently producing 1,350 units. In the long run equilibrium, the firm represented in the diagram A. will reduce its output to 750 units. B. will cease to exist. C. will reduce its output to 1,100 units. D. will continue to produce the same quantity. The table above lists the various pounds (lbs.) of apples that Margie Stattler can sell. Assume that Margie operates in a perfectly competitive market. How many pounds of apples should Margie sell to maximize her profit? A. 300 pounds B. 400 pounds C. This can be determined only when all of the values for market price, total revenue, average revenue and marginal revenue are given. D. This cannot be determined without knowing Margie's total or marginal production costs.