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The Figure Shows a Representative Firm in a Price-Taker Market

Question 235

Multiple Choice
The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure? A)This firm should shut down immediately. B)This firm is earning positive economic profit. C)This firm is able to cover its variable cost but not its total cost. D)All of the above are true.

The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure? The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure? A) This firm should shut down immediately. B) This firm is earning positive economic profit. C) This firm is able to cover its variable cost but not its total cost. D) All of the above are true.


A) This firm should shut down immediately.
B) This firm is earning positive economic profit.
C) This firm is able to cover its variable cost but not its total cost.
D) All of the above are true.

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