Use the Table Below to Answer the Following Question

Multiple Choice

Use the table below to answer the following question.
Table 12.2.4


-Refer to Table 12.2.4. The market is perfectly competitive and there are 1,000 firms that produce paper. The top table sets out the market demand schedule for paper.
Each producer of paper has the costs shown in the bottom table when it uses its least-cost plant size.
The market price is ________ a box and the market output is ________ boxes. The output produced by each firm is ________ boxes. Each firm ________.

A) $7.00; 250,000; 250; incurs an economic loss of $1,000 a week
B) $8.40; 350,000; 350; makes zero economic profit
C) $7.65; 300,000; 300; incurs an economic loss of $834 a week
D) $8.40; 350,000; 350; incurs an economic loss of $581 a week
E) $7.65; 350,000; 300; makes zero economic profit