Amonopolistically competitive firm is producing at an output level in the short run where average total cost is $ 4.50, price is $ 4.75, marginal revenue is $ 2.00, and marginal cost is $ 2.00. this firm is a. operating at a loss and is producing too many units to maximize profits. b. making positive profits and is producing too few units to maximize profits. c. making positive profits but is maximizing profits. d. operating at a loss but is maximizing profits.