Exhibit 7-3 a Firm's Cost and Marginal Revenue Curves

Exhibit 7-3 A firm's cost and marginal revenue curves

-In Exhibit 7-3,when the price is $2,the profit-maximising (or loss-minimising) firm:

A) should shut down and produce zero.
B) should produce output equal to 4.
C) is making an economic profit of $8.
D) should try to produce more output.
E) has total revenue equal to $20.