Refer to the graph shown. If the government set the selling price equal to the marginal cost, the firm in the graph would be:
A) making economic profits.
B) making normal profits.
C) sustaining losses and eventually would go out of business.
D) making zero economic profits.

Question

Refer to the graph shown. If the government set the selling price equal to the marginal cost, the firm in the graph would be: 
A) making economic profits. 
B) making normal profits. 
C) sustaining losses and eventually would go out of business. 
D) making zero economic profits.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If the government set the selling price equal to the marginal cost, the firm in the graph would be: 
A) making economic profits. 
B) making normal profits. 
C) sustaining losses and eventually would go out of business. 
D) making zero economic profits.

Refer to the Graph Shown