Figure 6.1:
-Refer to Figure 6.1 for a perfectly competitive firm.This firm earns zero economic profit at a price of:

Question

Figure 6.1: 
-Refer to Figure 6.1 for a perfectly competitive firm.This firm earns zero economic profit at a price of:

Quizplus · Accepted Answer

In a perfectly competitive market, a firm earns zero economic profit when the price equals the average total cost (ATC). Without seeing Figure 6.1, we can deduce that the correct answer is the price at which the firm's revenue just covers its total costs, implying no economic profit or loss.

Figure 6.1: -Refer to Figure 6.1 for a Perfectly Competitive Firm.This Firm