-Use the figure above to answer this question.Figure ________ shows a short-run equilibrium in good times because the firm makes a(n)________.
A) A; economic profit
B) A; normal profit
C) B; normal profit
D) B; economic loss
E) C; normal profit

Question

-Use the figure above to answer this question.Figure ________ shows a short-run equilibrium in good times because the firm makes a(n)________.
A) A; economic profit 
B) A; normal profit 
C) B; normal profit 
D) B; economic loss 
E) C; normal profit

Quizplus · Accepted Answer

Figure A shows a short-run equilibrium in good times because the firm makes an economic profit, indicated by the area where price is above average total cost.

-Use the Figure Above to Answer This Question