Consider the purely competitive firm whose data are shown in the accompanying graph. At its short-run equilibrium point, the firm is earning
A)zero normal profits.
B)zero economic profits.
C)zero accounting profits.
D)We can say nothing about this firm's profit or loss situation.

Question

Consider the purely competitive firm whose data are shown in the accompanying graph. At its short-run equilibrium point, the firm is earning
A)zero normal profits. 
B)zero economic profits. 
C)zero accounting profits. 
D)We can say nothing about this firm's profit or loss situation.

Quizplus · Accepted Answer

The Answer of  Consider the purely competitive firm whose data are shown in the accompanying graph. At its short-run equilibrium point, the firm is earning
A)zero normal profits. 
B)zero economic profits. 
C)zero accounting profits. 
D)We can say nothing about this firm's profit or loss situation.

Consider the Purely Competitive Firm Whose Data Are Shown in the Accompanying