Consider the following diagram where a perfectly competitive firm faces a price of $40. 44 AC 40 LAVC D 20 10 10 20 304 40 50 60 +70 80 67 * OUTPUT 34 79 Figure 8.1 1) Refer to Figure 8.1. At the profit- maximizing level of output, ATC is 1) A) $40. B) $31. C) $30. D) $26. E) $44