Refer to Figure 23.5 for a perfectly competitive firm. If this firm produces the level of output corresponding to point B in the short run, it will earn
A) Zero economic profit.
B) The maximum profit possible.
C) A profit, although not the maximum profit possible.
D) A loss.

Question

Refer to Figure 23.5 for a perfectly competitive firm. If this firm produces the level of output corresponding to point B in the short run, it will earn
A) Zero economic profit. 
B) The maximum profit possible. 
C) A profit, although not the maximum profit possible. 
D) A loss.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 23.5 for a perfectly competitive firm. If this firm produces the level of output corresponding to point B in the short run, it will earn
A) Zero economic profit. 
B) The maximum profit possible. 
C) A profit, although not the maximum profit possible. 
D) A loss.