Question

Use the figure below to answer the following question. Price and cost (dollars per unit) MC 10 Quantity (units) Figure 9 47) Refer to Figure 9, 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) 10; incurs an economic loss of $40 B) less than 10; incurs an economic loss of less than $20 C) 10; makes an economic profit of $20 D) 10; incurs an economic loss of $20 E) less than 10; incurs an economic loss of $20