Refer to the graph shown. If the market price is $3, a perfectly competitive firm:
A) breaks even.
B) earns a profit.
C) incurs a loss but can still cover its variable costs and some of its fixed costs.
D) incurs a loss and cannot cover its variable costs.

Question

Refer to the graph shown. If the market price is $3, a perfectly competitive firm: 
A) breaks even. 
B) earns a profit. 
C) incurs a loss but can still cover its variable costs and some of its fixed costs. 
D) incurs a loss and cannot cover its variable costs.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If the market price is $3, a perfectly competitive firm: 
A) breaks even. 
B) earns a profit. 
C) incurs a loss but can still cover its variable costs and some of its fixed costs. 
D) incurs a loss and cannot cover its variable costs.

Refer to the Graph Shown