Exhibit 8-4 Consider Exhibit 8-4

Exhibit 8-4 Consider Exhibit 8-4.If the market price is $8.50, what are the profit-maximizing output and profit?

A) output = 40; profit = $35
B) output = 40; profit = $0
C) output = 0; profit = -$50
D) output and profit cannot be determined because marginal revenue cannot be calculated
E) output and profit cannot be determined because average variable cost cannot be calculated