-Use the figure above to answer this question. Consider a perfectly competitive firm in a short-run equilibrium. Figure ________ shows a firm in bad times because the firm produces ________ units and makes a(n) ________.

Question

Quizplus · Accepted Answer

EOption C is correct because it describes a scenario where a firm is producing 100 units and making an economic loss, which is typical for a firm in bad times if it cannot cover its total costs. Option E is incorrect because it suggests the firm is making a normal profit, which contradicts the premise of the firm being in bad times.

-Use the Figure Above to Answer This Question