A pure monopolist is producing an output such that ATC = $4,P = $5,MC = $2,and MR = $3.This firm is realizing:

A) a loss that could be reduced by producing more output.
B) a loss that could be reduced by producing less output.
C) an economic profit that could be increased by producing more output.
D) an economic profit that could be increased by producing less output.

ATC

Average Total Cost, the total cost per unit of output calculated by dividing the total cost by the quantity produced.

Economic Profit

The gap between the total amount earned and the aggregate of all charges, considering both out-of-pocket and hidden expenses.

Pure Monopolist

A market participant that is the sole seller of a product or service, having significant control over its price.