Jim and Lisa own a dog-grooming business in Champlain,New York,called JL Groomers.There are many buyers and many sellers in the dog-grooming service market.JL Groomers experiences normal cost curves,with the marginal cost (MC)curve minimized at $14 and crosses average total cost (ATC)curve at $22.JL Groomers will make positive economic profits if the market price is:
A) $14.
B) between $14 and $22.
C) below $14.
D) $22.
E) above $22.

Question

Quizplus · Accepted Answer

If the market price is above $22, JL Groomers will be able to cover all their costs, including average total costs, and make positive economic profits.

Jim and Lisa Own a Dog-Grooming Business in Champlain,New York,called