Exhibit 8-10 Price and Cost Data for a Firm -In Exhibit 8-10, Following the Rule Regarding MR and MC

Exhibit 8-10 Price and cost data for a firm $$\begin{array} { | c | c | c | c | c | } \hline \text { Q } & \text { P } & \text { AVC } & \text { ATC } & \text { MC } \\\hline 0 & \$ 12 & - & - & - \\1 & 12 & 3 & 5 & 5 \\2 & 12 & 5 & 6 & 7 \\3 & 12 & 7.3 & 8 & 12 \\4 & 12 & 9.5 & 10 & 16 \\\hline\end{array}$$
-In Exhibit 8-10, following the rule regarding MR and MC, the most profitable output level is:

A) 0.
B) 1.
C) 2.
D) 3.
E) 4.