Table 16-3
a Monopolistically Competitive Firm Has the Following Cost

Table 16-3
A monopolistically competitive firm has the following cost structure:
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 1 & 30 \\\hline 2 & 32 \\\hline 3 & 36 \\\hline 4 & 42 \\\hline 5 & 50 \\\hline 6 & 63 \\\hline 7 & 77 \\\hline\end{array}$$ ​
-Refer to Table 16-3. The monopolistically competitive firm faces the following demand curve: ?
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Price } \\\text { (Dollars per unit) }\end{array} \\\hline 1 & 20 \\\hline 2 & 18 \\\hline 3 & 15 \\\hline 4 & 12 \\\hline 5 & 9 \\\hline 6 & 7 \\\hline 7 & 4 \\\hline\end{array}$$ If the government forces this firm to produce at its efficient scale, it will

A) produce 3 units and make $9.
B) produce 4 units and make $6.
C) produce 5 units and lose $5.
D) produce 7 units and lose $49.