A perfectly competitive firms average fixed cost function is AFC = 20/Q, its average variable cost function is AVC = 2 + 0.2Q, and it marginal cost function is MC = 2 + 0.4Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the market price of the good is P = $10, then the firm will:
A. produce 5 units of output and suffer a loss of $0
B. produce 5 units of output and suffer a loss of $30
C. produce 10 units of output and suffer a loss of $10
D. produce 10 units of output and suffer a loss of $40
E. produce 20 units of output and earn a profit of $60
F. produce 20 units of output and earn a profit of $100