Respuesta :
Answer:
continue producing 1000 units
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Profit is maximised where price is equal to marginal cost
the firm already maximises profit / loss because price ($2.50) is equal to marginal cost ($2.50). So, the firm should continue production at 1000 units
