If a Competitive Firm Has a U-Shaped Marginal Cost Curve

Multiple Choice

If a competitive firm has a U-shaped marginal cost curve then:

A) the profit-maximizing output will always generate positive economic profit.
B) the profit-maximizing output will always generate positive producer surplus.
C) the profit-maximizing output is found where MC = MR and MC is decreasing.
D) the profit-maximizing output is found where MC = MR and MC is constant.
E) the profit-maximizing output is found where MC = MR and MC is increasing.