10. N-Calculating Profit/Loss for PC Firm *4* Charley Company is a competitive price-taker firm that is currently producing 100 units of output (q-100), At the current level of production, the firm...

Extracted text: 10. N-Calculating Profit/Loss for PC Firm *4* Charley Company is a competitive price-taker firm that is currently producing 100 units of output (q-100), At the current level of production, the firm has Marginal Revenue of (MR=) $12, Marginal Cost of (MC=) $15, Average Variable Cost of (AVC=) $7, and Average Total Cost of (ATC=) $20. From this information, we can conclude that Charley Company is currently: O Suffering an economic loss but could decrease Its losses by decreasing production (q). O Enjoying an economic profit but could increase Its profits by Increasing production (q). O Enjoying an economic profit but could increase its profits by decreasing production (q). O Suffering an economic loss but should not change its production (a) as it is doing the best it can. O Suffering an economic loss but could decrease its losses by increasing production (a).