Refer to the following graph. The perfectly competitive firm depicted is currently:
A) earning positive economic profit.
B) earning zero economic profit.
C) incurring a loss, but the loss is smaller than it would be if the firm shut down.
D) incurring a loss that is larger than total fixed cost, and so the firm should shut down.

Question

Refer to the following graph.  The perfectly competitive firm depicted is currently:
A) earning positive economic profit. 
B) earning zero economic profit. 
C) incurring a loss, but the loss is smaller than it would be if the firm shut down. 
D) incurring a loss that is larger than total fixed cost, and so the firm should shut down.

Quizplus · Accepted Answer

The Answer of Refer to the following graph.  The perfectly competitive firm depicted is currently:
A) earning positive economic profit. 
B) earning zero economic profit. 
C) incurring a loss, but the loss is smaller than it would be if the firm shut down. 
D) incurring a loss that is larger than total fixed cost, and so the firm should shut down.

Refer to the Following Graph