Exhibit 10-3

-At the profit-maximizing output, the firm in Exhibit 10-3 is earning
A) an economic profit of $38
B) an economic profit, but the amount cannot be determined
C) zero economic profit
D) an economic profit of $32
E) an economic loss

Question

Exhibit 10-3
 
-At the profit-maximizing output, the firm in Exhibit 10-3 is earning
A) an economic profit of $38 
B) an economic profit, but the amount cannot be determined 
C) zero economic profit 
D) an economic profit of $32 
E) an economic loss

Quizplus · Accepted Answer

At the profit-maximizing output, the firm's total revenue equals its total cost, so it is earning zero economic profit.

Exhibit 10-3 -At the Profit-Maximizing Output, the Firm in Exhibit 10-3 Is