Zara is a 12 year old entrepreneur. She makes Lemonade in the family's kitchen and sells at a stand set up in front of her house everyday after school. Zara's street has many other children selling identical lemonade. Therefore, she operates in a perfectly competitive market. The Market price of a cup of lemonade is $2.00. Zara's total cost and marginal cost are as follows: TC = 10 + 0.025Q2 MC = 0.05Q

Zara's daily level of output that maximizes her profit or minimizes her losses is 40 cups. A) True B) False