The Figure Below Shows the Cost Curves of a Firm

Multiple Choice

The figure below shows the cost curves of a firm in a competitive market. The firm always makes the choice to maximize its profit.

-Refer to the figure above.If the price is more than $1.50 but at most $2.00,the firm should produce ________.

A) 0 units to avoid paying the variable cost
B) 0 units to break even
C) the quantity at which the marginal cost equals the price to avoid paying the fixed cost
D) the quantity at which the marginal cost equals the price, even though the firm would make a loss