For a perfectly competitive banana producer whose average total cost curve does not change, an economic profit could turn into an economic loss if the

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Quizplus · Accepted Answer

If the market demand for bananas decreases, the price of bananas will decrease as well. This decrease in price will cause the revenue of the banana producer to decrease, which could result in the economic profit turning into an economic loss if the price decrease is large enough. The other options (A, B, D, E) do not necessarily result in a change from economic profit to economic loss for a perfectly competitive banana producer whose average total cost curve does not change.

For a Perfectly Competitive Banana Producer Whose Average Total Cost