If a purely competitive firm is producing where price exceeds marginal cost, then: Group of answer choices the firm will fail to maximize profit and resources will be overallocated to the product. the firm will fail to maximize profit and resources will be underallocated to the product. resources will be underallocated to the product, but the firm will maximize profit. the firm will fail to maximize profit, but resources will be efficiently allocated.

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: