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Based on the Accompanying Graph, Is This Firm Earning Positive

Question 44

Multiple Choice

Based on the accompanying graph, is this firm earning positive, negative, or zero economic profits? Based on the accompanying graph, is this firm earning positive, negative, or zero economic profits?   A)  We cannot determine the firm's level of profit because we do not know about its revenues. B)  It is earning positive economic profit. C)  Because this is the short run, all firms earn positive economic profit. D)  It is earning zero economic profit. E)  It is earning negative economic profit.


A) We cannot determine the firm's level of profit because we do not know about its revenues.
B) It is earning positive economic profit.
C) Because this is the short run, all firms earn positive economic profit.
D) It is earning zero economic profit.
E) It is earning negative economic profit.

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