Refer to Figure 22.3 for a perfectly competitive firm.Which of the following statements is true for this firm between the prices of $10 and $15?
A) The firm is experiencing zero economic profits.
B) The firm is experiencing economic profits because the market price is greater than or equal to the minimum AVC.
C) The firm is experiencing economic losses and should shut down.
D) The firm is experiencing economic losses but should continue to produce.

Question

Refer to Figure 22.3 for a perfectly competitive firm.Which of the following statements is true for this firm between the prices of $10 and $15?
A) The firm is experiencing zero economic profits. 
B) The firm is experiencing economic profits because the market price is greater than or equal to the minimum AVC. 
C) The firm is experiencing economic losses and should shut down. 
D) The firm is experiencing economic losses but should continue to produce.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 22.3 for a perfectly competitive firm.Which of the following statements is true for this firm between the prices of $10 and $15?
A) The firm is experiencing zero economic profits. 
B) The firm is experiencing economic profits because the market price is greater than or equal to the minimum AVC. 
C) The firm is experiencing economic losses and should shut down. 
D) The firm is experiencing economic losses but should continue to produce.