The Figure Given Below Shows the Demand and Cost Curves

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.

Correct Answer:

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