Question

Use the figure below to answer the following questions. Price and cost dollars per unit) MC -MR 10 Quantity (units) Figure 12.3.1 24) Refer to Figure 12.3.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive industry. In the short run, if the market price of the good is $10, the firm produces units of output and A) less than 10; incurs an economic loss of $20 B) less than 10; incurs an economic loss of less than $20 C) 10; incurs an economic loss of $40 D) 10; incurs an economic loss of $20 E) 10; makes an economic profit of $20