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