-The above figure shows a perfectly competitive firm.If the market price is $5,the firm
A) is making an economic profit.
B) is making zero economic profit.
C) will immediately shut down.
D) will not shut down.
E) might shut down but more information is needed about the AVC.

Question

-The above figure shows a perfectly competitive firm.If the market price is $5,the firm
A) is making an economic profit. 
B) is making zero economic profit. 
C) will immediately shut down. 
D) will not shut down. 
E) might shut down but more information is needed about the AVC.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows a perfectly competitive firm.If the market price is $5,the firm
A) is making an economic profit. 
B) is making zero economic profit. 
C) will immediately shut down. 
D) will not shut down. 
E) might shut down but more information is needed about the AVC.

-The Above Figure Shows a Perfectly Competitive Firm