Zoe's Bakery determines that P AVC.Zoe should: A.continue to operate even though she is taking an economic loss. B.continue to operate, as she is making an economic profit. C.shut down immediately, as she is taking an economic loss. D.raise the price until she has maximized her profits.

Question

Zoe's Bakery determines that P < ATC and P > AVC.Zoe should:
A.continue to operate even though she is taking an economic loss.
B.continue to operate, as she is making an economic profit.
C.shut down immediately, as she is taking an economic loss.
D.raise the price until she has maximized her profits.

Quizplus · Accepted Answer

The Answer of Zoe's Bakery determines that P < ATC and P > AVC.Zoe should:
A.continue to operate even though she is taking an economic loss.
B.continue to operate, as she is making an economic profit.
C.shut down immediately, as she is taking an economic loss.
D.raise the price until she has maximized her profits.

Zoe's Bakery Determines That P < ATC and P >