Exhibit 12-5 Refer to Exhibit 12-5.The lowest price at which the firm can earn at least zero economic profit is:

Question

Exhibit 12-5  Refer to Exhibit 12-5.The lowest price at which the firm can earn at least zero economic profit is:

Quizplus · Accepted Answer

The lowest price at which the firm can earn at least zero economic profit is where the firm's ATC curve intersects with the demand curve. In this case, that intersection occurs at a price of $45. At prices below $45, the firm will experience a loss and at prices above $45, the firm will earn positive economic profit.