For a perfectly competitive rancher in Wyoming,if the price does not change,an economic profit could turn into an economic loss if the
A) average total cost curve shifts downward.
B) average total cost curve does not change.
C) average total cost curve shifts upward.
D) marginal cost curve shifts downward.
E) average fixed cost decreases.

Question

Quizplus · Accepted Answer

If the average total cost curve shifts upward, the rancher's cost of production will increase, and if the price remains the same, the rancher will no longer be earning economic profit, but will instead incur an economic loss.

For a Perfectly Competitive Rancher in Wyoming,if the Price Does