Use the Figure Below to Answer the Following Questions

Use the figure below to answer the following questions.

Figure 12.3.1
-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) 10; incurs an economic loss of $20
B) 10; incurs an economic loss of $40
C) less than 10; incurs an economic loss of $20
D) 10; makes an economic profit of $20
E) less than 10; incurs an economic loss of less than $20