The Price of a Firm's Product Is $6 and the Firm

question 37

Multiple Choice

The price of a firm's product is $6 and the firm faces a constant marginal cost of $4 that is equal to its (constant) average total cost. If the firm does not sell a unit of its product on the day it was produced, it is sold in a secondary market for a price of $3. If the firm does not sell a unit of its product on the day it was produced, there is a ________ of _______per unit not sold.

• A)profit; $1
• B)profit; $2
• C)loss; $2
• D)loss; $1