The Figure Given Below Shows the Demand and Cost Curves

question 48

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Refer to Figure 9.4.At the profit-maximizing output level,which of the following is true?

• A)The firm is making a profit of $10 per unit.
• B)The firm is making a profit of $45 per unit.
• C)The firm is losing $35 per unit.
• D)The firm is losing $10 per unit.
• E)The firm is breaking even.

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