Assume the XYZ Corporation is producing 20 units of output.It is selling this output in a perfectly competitive market at $10 per unit.Its fixed costs are $100 and its average variable cost is $3 at 20 units of output.On the basis of this information we can say that the corporation:
A)should close down in the short run
B)is maximizing its profits
C)is realizing an economic loss of $60
D)is realizing an economic profit of $40
E)is realizing an economic profit of $60

Question

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The Answer of Assume the XYZ Corporation is producing 20 units of output.It is selling this output in a perfectly competitive market at $10 per unit.Its fixed costs are $100 and its average variable cost is $3 at 20 units of output.On the basis of this information we can say that the corporation:
A)should close down in the short run
B)is maximizing its profits
C)is realizing an economic loss of $60
D)is realizing an economic profit of $40
E)is realizing an economic profit of $60

Assume the XYZ Corporation Is Producing 20 Units of Output