Refer to Figure 13.10. If Armstrong Cable is forced to sell the efficient level output, it will

A) incur a loss of $7,250.
B) incur a loss of $1,250.
C) earn a zero profit.
D) earn a profit of $4,000.

Efficient Level Output

The level of production where average total costs are minimized and marginal costs equal marginal revenues.

Zero Profit

A situation in which a firm's total revenues match its total costs, resulting in neither profit nor loss.