Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation
A)should close down in the short run.
B)is maximizing its profits.
C)is realizing an economic loss of $60.
D)is realizing an economic Profit of $40.

Question

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The Answer of Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation
A)should close down in the short run.
B)is maximizing its profits.
C)is realizing an economic loss of $60.
D)is realizing an economic Profit of $40.

Assume the XYZ Corporation Is Producing 20 Units of Output