Table 105 Table 10

Multiple Choice

Table 10.5 Table 10.5 shows the demand and cost data facing a monopolistically competitive producer of canvas bags.
-Refer to Table 10.5.At the profit-maximising or loss-minimising output level

A) the firm makes a profit of $12.
B) the firm incurs a loss equal to its fixed cost.
C) the firm makes a profit of $16.
D) the firm incurs a loss of $14.