Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. 
Figure 12.5
Refer to Figure 12.5. A firm produces hula hoops in a perfectly competitive market and currently produces and sells 100 per week. At this production quantity of 100 per week, society would be best served
A. if the price remained at $10 per hula hoop.
B. if the price was higher than $10 per hula hoop.
C. if the price was lower than $10 per hula hoop.
D. Society cannot be best served at a production quantity of 100, regardless of the price per hula hoop.
Answer: C
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