Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.
TABLE 9-3
-Refer to Table 9-3.Suppose the prevailing market price for this firm's product is $0.42 and the firm produces its profit-maximizing level of output.At this price
A)the firm is earning zero economic profits.
B)the firm is earning positive economic profits.
C)the firm is suffering economic losses and this firm will exit the industry.
D)the firm should increase output.
E)the firm should decrease output.

Question

Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.
  TABLE 9-3
-Refer to Table 9-3.Suppose the prevailing market price for this firm's product is $0.42 and the firm produces its profit-maximizing level of output.At this price
A)the firm is earning zero economic profits. 
B)the firm is earning positive economic profits. 
C)the firm is suffering economic losses and this firm will exit the industry. 
D)the firm should increase output. 
E)the firm should decrease output.

Quizplus · Accepted Answer

The Answer of Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.
  TABLE 9-3
-Refer to Table 9-3.Suppose the prevailing market price for this firm's product is $0.42 and the firm produces its profit-maximizing level of output.At this price
A)the firm is earning zero economic profits. 
B)the firm is earning positive economic profits. 
C)the firm is suffering economic losses and this firm will exit the industry. 
D)the firm should increase output. 
E)the firm should decrease output.

Consider the Following Total Cost Schedule for a Perfectly Competitive