-Refer to Figure 9.6.At a market price of $20,this profit-maximizing firm would earn ________ in economic profit.

Question

Quizplus · Accepted Answer

At a market price of $20, a profit-maximizing firm would earn $0 in economic profit if $20 is equal to the firm's average total cost. Economic profit is calculated as total revenue minus total cost, and if the price is equal to the average total cost, the firm breaks even, earning zero economic profit.