-Assuming no price discrimination,the firm represented by Figure 10-16 will have a(n)
A)economic profit of approximately $7,500
B)economic profit of approximately $4,375
C)economic profit of approximately $2,500
D)economic loss of approximately $15,625
E)break-even situation with neither economic profit nor economic loss

Question

-Assuming no price discrimination,the firm represented by Figure 10-16 will have a(n)
A)economic profit of approximately $7,500 
B)economic profit of approximately $4,375 
C)economic profit of approximately $2,500 
D)economic loss of approximately $15,625 
E)break-even situation with neither economic profit nor economic loss

Quizplus · Accepted Answer

The firm is making an economic profit because the price is above the average total cost.

-Assuming No Price Discrimination,the Firm Represented by Figure 10-16 Will