The Following Table Shows a Profit-Maximizing Producer's Marginal Costs

The following table shows a profit-maximizing producer's marginal costs.The firm is operating in a perfectly competitive market and has fixed costs of $500.

-Refer to the above information to answer this question.If the price is $120,what is the optimal output and what is the profit or loss?

A) 0 and a loss of $500.
B) 3 and a loss of $90.
C) 3 and a loss of $150.
D) 4 and a loss of $640.
E) 5 and a profit of $250.

Correct Answer:

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