Use the following to answer questions:
Figure: Profit Maximization 5
-(Figure: Profit Maximization 5) The firm in this diagram earns zero economic profit at a price of
A) $3.
B) $5.
C) $9 or less.
D) $4 or less.

Question

Use the following to answer questions:
Figure: Profit Maximization 5 
-(Figure: Profit Maximization 5) The firm in this diagram earns zero economic profit at a price of
A) $3. 
B) $5. 
C) $9 or less. 
D) $4 or less.

Quizplus · Accepted Answer

A firm earns zero economic profit when price equals average total cost (ATC). In the diagram, this occurs at a price of $5.

Use the Following to Answer Questions