Multiple Choice
If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm's average total cost is $52, then the firm
A) makes zero economic profit.
B) makes an economic profit of $2 per unit.
C) incurs an economic loss of $2 per unit.
D) incurs a total economic loss of $52.
E) More information is needed to determine the firm's economic profit or loss per unit.
Correct Answer:
Verified
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