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A baker wants to establish a pie factory

Economics

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A baker wants to establish a pie factory. The cost of leasing the factory is $1,000 per day. The profit-maximizing quantity of pies is 1,000 pies a day. Each pie sells for $3 and costs only $2.10 to make. Which of the following is a correct conclusion based on this information?

The baker will enjoy profits of $900 per day.

At the profit-maximizing quantity, the baker's producer surplus is -$200.

The baker should not enter the industry.

The baker will enjoy profits of $3,000 per day.