The Minimum Short-Run Average Total Cost for Tony's Barbecue Equals

The minimum short-run average total cost for Tony's Barbecue equals $8.50 at an output level of 100 meals per day.The market price of each meal is $8.In short-run equilibrium,Tony

A) will suffer an economic loss of $50 per day,serving 100 meals per day
B) cannot avoid an economic loss and should produce where the difference between average total cost and the price is minimized
C) cannot avoid an economic loss and should serve no meals per day
D) will suffer an economic loss greater than $50 per day,serving more than 100 meals per day
E) will suffer an economic loss greater than $50 per day,serving less than 100 meals per day

Correct Answer:

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