A monopolistically competitive firm is producing at an output level in the short run where average total cost is $5.25, price is $4.50, marginal revenue is $2.50, and marginal cost is $3.00. This firm is A. operating at a loss and is producing too many units to maximize profits. B. operating at a loss and is maximizing profits. C. making positive profits and is producing too few units to maximize profits. D. making positive profits and is producing too many units to maximize profits.