These are the cost and revenue curves associated with a firm. Assuming the firm in the graph is producing Q1 and charging P3,it is likely showing the cost and revenue curves of a firm in:
A) the long run, and economic profits are zero.
B) the short run, and accounting profits are negative.
C) the long run, and accounting profits are zero.
D) the short run, and economic profits are positive.

Question

These are the cost and revenue curves associated with a firm.  Assuming the firm in the graph is producing Q1 and charging P3,it is likely showing the cost and revenue curves of a firm in:
A) the long run, and economic profits are zero. 
B) the short run, and accounting profits are negative. 
C) the long run, and accounting profits are zero. 
D) the short run, and economic profits are positive.

Quizplus · Accepted Answer

The Answer of These are the cost and revenue curves associated with a firm.  Assuming the firm in the graph is producing Q1 and charging P3,it is likely showing the cost and revenue curves of a firm in:
A) the long run, and economic profits are zero. 
B) the short run, and accounting profits are negative. 
C) the long run, and accounting profits are zero. 
D) the short run, and economic profits are positive.

These Are the Cost and Revenue Curves Associated with a Firm