Assume that the equilibrium price in a perfectly competitive industry is $4. If a firm in this industry produces and sells 10 units with an average...

Assume that the equilibrium price in a perfectly competitive industry is $4.25. If a firm in this industry produces and sells 10 units with an average total cost of $5.00, it will:

a. make a profit of $7.50

b. make a profit of $.75

c. earn a profit of $9.25

d. suffer a loss of $7.50

e. suffer a loss of $0.75