Suppose Chris Is a Potter Who Makes Mugs If the Market for Mugs Is Perfectly Competitive, and Mugs

question 158

Multiple Choice

Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table. $$\begin{array} { | c | c | } \hline \text { Number d Mugs Per Day } & \text { Tatal Cast Per Day } \\\hline 0 & \$ 10 \\\hline 1 & \$ 14 \\\hline 2 & \$ 19 \\\hline 3 & \$ 25 \\\hline 4 & \$ 32 \\\hline 5 & \$ 40 \\\hline 6 & \$ 49 \\\hline\end{array}$$  
If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then at his profit-maximizing level of output, Chris will earn a ________ of ________ per day.

• A)loss; $2
• B)loss; $10
• C)profit; $2
• D)profit; $30