If the Short-Run Marginal Costs of Producing a Good Are

Multiple Choice

If the short-run marginal costs of producing a good are $40 for the first 200 units and $50 for each additional unit beyond 200, then in the short run, if the market price of output is $46, a profit-maximizing firm will

A) produce a level of output where marginal revenue equals marginal costs.
B) produce as much output as possible since there are constant returns to scale.
C) produce up to the point where average costs equal $46.
D) not produce at all, since marginal costs are increasing.
E) produce exactly 200 units.