Consider the following information for a prfectly competitive firm during a one month time period. Assume that Q = the level of output and all costs are economic costs.

• Market price = $12.
• Total cost = 60 + 2Q + 0.5Q²
• Marginal cost = 3 + Q

At the profit-maximizing or loss-minimizing output level, economic profit would equal:

Hint: Solve for Q first. Remember, a firm maximizes profit producing a level of output where the last unit has a marginal revenue equal to its marginal cost.

Select one:

a. +$108

b. +$118.50

c. -$10.50

d. -$75