The figure above shows some of a firm's cost curves and its marginal revenue curve.
-Based on the figure above,if the firm produces 10 cans per day,the firm ________ maximizing its profit and is ________.
A) is; incurring an economic loss
B) is; making zero economic profit
C) is; making an economic profit
D) is not; incurring an economic loss
E) is not; making zero economic profit

Question

The figure above shows some of a firm's cost curves and its marginal revenue curve.
-Based on the figure above,if the firm produces 10 cans per day,the firm ________ maximizing its profit and is ________.
A) is; incurring an economic loss 
B) is; making zero economic profit 
C) is; making an economic profit 
D) is not; incurring an economic loss 
E) is not; making zero economic profit

Quizplus · Accepted Answer

At 10 cans per day, the firm's price per can is above its average total cost, indicating it is making an economic profit, thus maximizing its profit.

The Figure Above Shows Some of a Firm's Cost Curves