The following figure shows the marginal cost curve (MC) for a firm producing fancy dolls for children.The market price for a doll is $4 per unit.

-Refer to Figure .If the market price declined to $1 per doll, which of the following statements will be true?
A)The firm is unlikely to produce because the marginal cost of production is higher than $1.
B)The firm will produce less than 2,000 dolls in a month.
C)The profit from producing in the range where price is greater than marginal cost is unlikely to cover the loss of the initial levels of production.
D)The firm will earn high revenue as quantity demanded of dolls in the market rises substantially.

Question

The following figure shows the marginal cost curve (MC) for a firm producing fancy dolls for children.The market price for a doll is $4 per unit.

-Refer to Figure .If the market price declined to $1 per doll, which of the following statements will be true?
A)The firm is unlikely to produce because the marginal cost of production is higher than $1. 
B)The firm will produce less than 2,000 dolls in a month. 
C)The profit from producing in the range where price is greater than marginal cost is unlikely to cover the loss of the initial levels of production. 
D)The firm will earn high revenue as quantity demanded of dolls in the market rises substantially.

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The Answer of 
The following figure shows the marginal cost curve (MC) for a firm producing fancy dolls for children.The market price for a doll is $4 per unit.

-Refer to Figure .If the market price declined to $1 per doll, which of the following statements will be true?
A)The firm is unlikely to produce because the marginal cost of production is higher than $1. 
B)The firm will produce less than 2,000 dolls in a month. 
C)The profit from producing in the range where price is greater than marginal cost is unlikely to cover the loss of the initial levels of production. 
D)The firm will earn high revenue as quantity demanded of dolls in the market rises substantially.

The Following Figure Shows the Marginal Cost Curve (MC) for a Firm