Use the Figure Below to Answer the Following Questions

Multiple Choice

Use the figure below to answer the following questions. Figure 13.2.3
-Refer to Figure 13.2.3.Assume this firm faces demand curve D₁.At the profit-maximizing output level,the firm

A) incurs an economic loss.
B) makes zero economic profit.
C) makes an economic profit.
D) makes less economic profit than that earned by firms in perfect competition.
E) makes an unknown economic profit that is impossible to determine without information concerning the price charged by the rival firms.