Narrbegin Exhibit 7.1 Total revenue and total cost graph
-In Exhibit 7.1, if output is 200 units per week, economic profit for the firm is:
A) zero.
B) at its minimum.
C) at its maximum.
D) average.

Question

Narrbegin Exhibit 7.1 Total revenue and total cost graph  
-In Exhibit 7.1, if output is 200 units per week, economic profit for the firm is:
A) zero. 
B) at its minimum. 
C) at its maximum. 
D) average.

Quizplus · Accepted Answer

At 200 units per week, the total revenue is equal to the total cost, resulting in zero economic profit. This is the breakeven point for the firm, where it is neither making a profit nor incurring a loss. Therefore, option A is the correct answer.