Refer to the graph shown. If this firm is maximizing profit, it will:
A) earn just normal profits, that is, zero economic profits.
B) earn economic profits.
C) incur a loss.
D) make enough to cover its variable costs but not its fixed costs.

Question

Refer to the graph shown. If this firm is maximizing profit, it will: 
A) earn just normal profits, that is, zero economic profits. 
B) earn economic profits. 
C) incur a loss. 
D) make enough to cover its variable costs but not its fixed costs.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If this firm is maximizing profit, it will: 
A) earn just normal profits, that is, zero economic profits. 
B) earn economic profits. 
C) incur a loss. 
D) make enough to cover its variable costs but not its fixed costs.

Refer to the Graph Shown