Consider a perfectly competitive firm in the following position: output = 4000 units, market price = $1, total fixed costs = $2000, total variable costs = $1000, and marginal cost = $1.10. To maximize profits, the firm should
◦ produce zero output.
◦ increase the market price.
◦ reduce its output.
◦ not change its output.
◦ expand its output.