If production is occurring where marginal cost exceeds price, the purely competitive firm will . a. maximize profit, but resources will be underallocated to the product. b. maximize profit, but resources will be overallocated to the product. c. fail to maximize profit and resources will be overallocated to the product. d. fail to maximize profit and resources will be underallocated to the product.

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?