Answer the question on the basis of the following data confronting a firm: $\begin{array}{l}\begin{array}{ccr}& & \text{ Marginal }\\ \text{ Output }& & \text{ Reven }\\ 0& & --\\ 1& & \$16\\ 2& & 16\\ 3& & 16\\ 4& & 16\\ 5& & 16\end{array}\begin{array}{c}Marginal\\ Cost\\ --\\ \$10\\ 9\\ 13\\ 17\\ 21\end{array}\end{array}$ Refer to the data.If the firm's minimum average variable cost is $10,the firm's profit-maximizing level of output would be:

A) 2.
B) 3.
C) 4.
D) 5.

Profit-Maximizing

A strategy firms adopt aiming to produce the quantity of goods or services that leads to the highest possible profit.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a particular period.