A Monopolistically Competitive Firm Is Producing at an Output Level

A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.00, price is $4.50, marginal revenue is $2.50, and marginal cost is $2.50. This firm is operating

A) with a loss.
B) with positive profits.
C) at the break-even point.
D) at a nonoptimal level of output.