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Figure 7-A -Refer to Figure 7-B.When the Market Price Equals $105, and Equals

Question 158

Multiple Choice

Figure 7-A Figure 7-A   -Refer to Figure 7-B.When the market price equals $105, and the firm sells 675 units of output, the firm: A) is earning a normal profit. B) is earning positive economic profits. C) is experiencing a loss, but should continue operating temporarily because business conditions may improve. D) is experiencing a loss and should shut down.
-Refer to Figure 7-B.When the market price equals $105, and the firm sells 675 units of output, the firm:


A) is earning a normal profit.
B) is earning positive economic profits.
C) is experiencing a loss, but should continue operating temporarily because business conditions may improve.
D) is experiencing a loss and should shut down.

Correct Answer:

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