Please decide true or false and explain:
In a perfect competitive industry, the market price is $25. A firm is
currently producing 10000 units of output, its average total cost is
$28, its marginal cost is $20, and its average variable cost is $20,
these facts mean that:
statement1.the firm is currently producing at the minimum average
variable cost.
statement2. the firm should produce more output to maximize its
profit.
statement3. average total cost will be less than $28 at the level of
output that maximizes the firm's profit.
(assume normal, u-shape cost curve)