Figure 13-13
-Refer to Figure 13-13.Assume Starbucks is successful with its new health and wellness stores,and as a result it is able to earn economic profits.Which of the graphs in the figure above reflects this?
A) Panel A
B) Panel B
C) Panel C
D) either Panel A or Panel B

Question

Figure 13-13 
-Refer to Figure 13-13.Assume Starbucks is successful with its new health and wellness stores,and as a result it is able to earn economic profits.Which of the graphs in the figure above reflects this?
A) Panel A 
B) Panel B 
C) Panel C 
D) either Panel A or Panel B

Quizplus · Accepted Answer

Panel A reflects a situation where a firm is earning economic profits, as it shows the price (P) being greater than the average total cost (ATC) at the profit-maximizing quantity.

Figure 13-13 -Refer to Figure 13-13.Assume Starbucks Is Successful with Its New