The figure above illustrates a firm's demand and marginal revenue curves and its cost curves.
-If the firm in the figure above attempted to minimize its average total cost by producing 100 pairs of Tommy jeans per day at an average total cost of $20 per pair and it sold those jeans for $80 per pair,the firm would ________.
A) earn zero economic profit
B) earn a larger economic profit that a firm that produced 125 jeans because the ATC of producing 125 jeans is higher than the ATC of producing 100 jeans
C) incur an economic loss
D) earn a smaller economic profit than a firm that produced 125 jeans
E) achieve an efficient use of resources
Correct Answer:
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