The Accompanying Figure Shows the Demand Curve, Marginal Revenue Curve

Multiple Choice

The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. At this monopolist's profit-maximizing level of output, it:

A) earns an economic profit of $16 per day.
B) incurs an economic loss of $16 per day.
C) earns an economic profit of $64 per day.
D) incurs an economic loss of $64 per day.