Table 7-2 Arnie Sells Basketballs in a Perfectly Competitive Market

Multiple Choice

Table 7-2
Arnie sells basketballs in a perfectly competitive market. Table 7-2 summarises Arnie's output per day (Q) , total cost (TC) , average total cost (ATC) and marginal cost (MC) .
-Refer to Table 7-2.What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00?

A) Q = 1; profit = -$10.
B) Q = 3; profit = -$7.50
C) Q = 0; profit = -$10.00
D) Price and profit cannot be determined from the information given.