Use the figure below to answer the following questions.
Figure 14.2.3
-Refer to Figure 14.2.3.Assume this firm faces demand curve D2.At the profit-maximizing output level,the firm
A) incurs an economic loss.
B) makes zero economic profit.
C) makes an economic profit.
D) is not in a long-run equilibrium.
E) is producing at its efficient scale.
Correct Answer:
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