Figure 14-2
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-2. If the market price is Pb, in the short run the firm will earn
A)positive economic profits.
B)negative economic profits but will try to remain open.
C)negative economic profits and will shut down.
D)zero economic profits.

Question

Figure 14-2
Suppose a firm operating in a competitive market has the following cost curves: 
-Refer to Figure 14-2. If the market price is Pb, in the short run the firm will earn
A)positive economic profits. 
B)negative economic profits but will try to remain open. 
C)negative economic profits and will shut down. 
D)zero economic profits.

Quizplus · Accepted Answer

The Answer of Figure 14-2
Suppose a firm operating in a competitive market has the following cost curves: 
-Refer to Figure 14-2. If the market price is Pb, in the short run the firm will earn
A)positive economic profits. 
B)negative economic profits but will try to remain open. 
C)negative economic profits and will shut down. 
D)zero economic profits.

Figure 14-2 Suppose a Firm Operating in a Competitive Market Has the Has