This graph shows the cost functions of Moe's mushroom gathering business,which is perfectly competitive.
When mushrooms sell for $10 per bushel,if Moe chooses the profit maximizing quantity Moe will gather

Question

This graph shows the cost functions of Moe's mushroom gathering business,which is perfectly competitive. 
When mushrooms sell for $10 per bushel,if Moe chooses the profit maximizing quantity Moe will gather

Quizplus · Accepted Answer

When price is less than ATC at the profit-maximizing quantity he will experience a loss.

This Graph Shows the Cost Functions of Moe's Mushroom Gathering