Use the following to answer question:
Figure: A Rock Climbing Shoe Monopoly
-(Figure: A Rock Climbing Shoe Monopoly) Use Figure: A Rock Climbing Shoe Monopoly.If the firm is regulated such that it earns zero economic profit,the firm will sell _____ pairs of shoes at a price of _____ per pair.

Question

Use the following to answer question:
Figure: A Rock Climbing Shoe Monopoly

-(Figure: A Rock Climbing Shoe Monopoly) Use Figure: A Rock Climbing Shoe Monopoly.If the firm is regulated such that it earns zero economic profit,the firm will sell _____ pairs of shoes at a price of _____ per pair.

Quizplus · Accepted Answer

In a scenario where a firm is regulated to earn zero economic profit, it will operate where its average total cost (ATC) is equal to the market price. This ensures the firm covers all its costs, including normal profit, but does not make an economic profit. The correct choice indicates the quantity and price at which the firm's ATC intersects with the demand curve, representing the point of zero economic profit.

Use the Following to Answer Question