If an average cost pricing rule is imposed on the firm in the figure above, the firm will make an economic profit of
A) zero.
B) -$240.
C) $150.
D) $400.

Name: If an average cost pricing rule is imposed on the firm in the figure above, the firm will make an economic profit of A) zero. B) -$240. C) $150. D) $400.
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Question

Quizplus · Accepted Answer

Under an average cost pricing rule, the firm sets its price equal to its average total cost, resulting in zero economic profit.

If an Average Cost Pricing Rule Is Imposed on the Firm