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Use the Following Scenario to Answer the Following Questions

Question 71

Multiple Choice

Use the following scenario to answer the following questions:
Chuck Diesel Burger is a food truck in Houston,Texas.Imagine that Chuck Diesel Burger's minimum average total cost (ATC) is $3.75 and that its minimum average variable cost (AVC) is $2.50.Assume there are no barriers to enter into or exit from the food-truck market.
-Refer to the accompanying table.A firm participating in a competitive market with these costs would be making a profit if the price is Use the following scenario to answer the following questions: Chuck Diesel Burger is a food truck in Houston,Texas.Imagine that Chuck Diesel Burger's minimum average total cost (ATC) is $3.75 and that its minimum average variable cost (AVC) is $2.50.Assume there are no barriers to enter into or exit from the food-truck market. -Refer to the accompanying table.A firm participating in a competitive market with these costs would be making a profit if the price is   A)  $6. B)  $8. C)  $4. D)  $2. E)  either $6 or $8.


A) $6.
B) $8.
C) $4.
D) $2.
E) either $6 or $8.

Correct Answer:

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