A company is producing 15,000 widgets. At this output level, marginal revenue is $22, marginal cost is $18, price is $48, and average total cost is $40. What can we conclude from this information?
a. Profit is negative and would increase when the firm decreases price.
b. Profit is positive and would increase when the firm increases price.
c. Profit is positive and would increase when the firm decreases price.
d. Profit is negative and would increase when the firm increases price.