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Exhibit 12-2 Refer to Exhibit 12-2

Question 65

Multiple Choice

Exhibit 12-2 Exhibit 12-2 Refer to Exhibit 12-2.When the market price equals $105,and the firm sells 675 units of output,the firm: A) is earning a normal profit. B) is earning positive economic profits. C) is experiencing a loss, but should continue operating temporarily because business conditions may improve. D) is experiencing a loss and should shut down. Refer to Exhibit 12-2.When the market price equals $105,and the firm sells 675 units of output,the firm:

A) is earning a normal profit.
B) is earning positive economic profits.
C) is experiencing a loss, but should continue operating temporarily because business conditions may improve.
D) is experiencing a loss and should shut down.

Correct Answer: