A profit-maximising firm in a competitive market is able to sell its product for $6. At its current level of output, the firm's average total cost is $8. Its marginal cost curve crosses the marginal revenue curve at an output level of 20 units. What is the total loss of this firm?
A) more than $40
B) exactly $40
C) less than $40
D) none of the above
Correct Answer:
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