The Figure Given Below Shows the Demand and Cost Curves

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm.Figure: 10.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Refer to Figure 10.4. At the profit-maximizing output level, which of the following is true?

A) The firm is making a profit of $10 per unit.
B) The firm is making a profit of $45 per unit.
C) The firm is losing $35 per unit.
D) The firm is losing $10 per unit.
E) The firm is breaking even.