The following table shows cost data for a perfectly competitive firm.OutputAverage Fixed CostAverage Variable CostAverage Total CostMarginal Cost1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360If the market price for the firm's product is $180, the firm will produce
A. 8 units and earn economic profits of $278.
B. 8 units and earn economic profits of $120.
C. 7 units and earn economic profits of $238.
D. 7 units and earn economic profits of $278.
Answer: C
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