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 the socially optimal level of output, this monopolist would:

A) earn an economic profit of $16.
B) incur an economic loss of $16.
C) incur an economic loss of $64.
D) incur an economic loss of $112.