Suppose your firm has a U-shaped average variable cost curve and opera

Suppose your firm has a U-shaped average variable cost curve and operates in a perfectly competitive market.

If you produce where the product price (marginal revenue) equals average variable cost (on the upward sloping portion of the AVC curve), then your output will: A) exceed the profit-maximizing level of output.
B) be smaller than the profit-maximizing level of output.
C) equal the profit-maximizing level of output.
D) generate zero economic profits.

ANSWER

A