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
