Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. Figure 9.3
-Refer to Figure 9.3. This firm will ________ if price is between $7 and $13.
A) earn an economic profit
B) shut down in the short run, but operate in the long run
C) continue to operate in the short run, but incur an economic loss
D) shut down

Question

Refer to the information provided in Figure 9.3 below to answer the question(s) that follow.  Figure 9.3
-Refer to Figure 9.3. This firm will ________ if price is between $7 and $13.
A) earn an economic profit 
B) shut down in the short run, but operate in the long run 
C) continue to operate in the short run, but incur an economic loss 
D) shut down

Quizplus · Accepted Answer

If the price is between $7 and $13, the firm covers its variable costs but not its total costs, leading to an economic loss. However, it will continue to operate in the short run to cover some of its fixed costs.

Refer to the Information Provided in Figure 9