Refer to the information provided in Figure 9.2 below to answer the question(s) that follow. Figure 9.2
-Refer to Figure 9.2. In the $6-$7 price range, the firm will
A) shut down.
B) continue to operate but at a loss.
C) break even.
D) earn a profit.

Question

Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.  Figure 9.2
-Refer to Figure 9.2. In the $6-$7 price range, the firm will
A) shut down. 
B) continue to operate but at a loss. 
C) break even. 
D) earn a profit.

Quizplus · Accepted Answer

In the $6-$7 price range, the firm will continue to operate but at a loss because the price covers the variable costs but not the total costs, meaning it can cover the costs of production but not make a profit.

Refer to the Information Provided in Figure 9