Refer to the information provided in Figure 15.6 below to answer the question(s) that follow. Figure 15.6
-Refer to Figure 15.6. If Trollio's T-shirts is producing 50 silk-screened T-shirts and selling each T-shirt at $16, then in the long run this firm should

Question

Refer to the information provided in Figure 15.6 below to answer the question(s) that follow.  Figure 15.6
-Refer to Figure 15.6. If Trollio's T-shirts is producing 50 silk-screened T-shirts and selling each T-shirt at $16, then in the long run this firm should

Quizplus · Accepted Answer

In the long run, if a firm is covering all its costs, including opportunity costs, it is earning a normal profit, which is considered a zero economic profit in economic terms. This situation indicates that the firm is doing as well as it could by investing its resources elsewhere. Therefore, if Trollio's T-shirts is covering all its costs by producing 50 silk-screened T-shirts and selling each at $16, it should continue this operation in the long run, as it indicates the firm is in a stable and sustainable position.

Refer to the Information Provided in Figure 15