Use the following to answer question:
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The lowest price that will yield non-negative economic profit is indicated by the letter:

Question

Use the following to answer question: 
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The lowest price that will yield non-negative economic profit is indicated by the letter:

Quizplus · Accepted Answer

The lowest price that will yield non-negative economic profit is where the average total cost (ATC) curve intersects with the demand curve (D). This intersection point is labeled as E. At any price above E, the firm will earn positive economic profit, and at any price below E, the firm will earn negative economic profit or incur losses. Therefore, the best choice for the firm is to produce at the point where MC=MR=E, which is the profit-maximizing output level.

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