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-Use the Figure Above to Answer This Question

Question 279

Multiple Choice

-Use the figure above to answer this question.Consider a perfectly competitive firm in a short run equilibrium.Figure ________ shows a firm in bad times because the firm makes a(n) ________. A) A; economic loss of $4 per unit if the firm decides to operate B) A; economic loss of $4 so it must close C) B; economic loss of $3 per unit D) B; economic profit because the price exceeds average variable cost E) C; normal profit and can stay open in the long run
-Use the figure above to answer this question.Consider a perfectly competitive firm in a short run equilibrium.Figure ________ shows a firm in bad times because the firm makes a(n) ________.


A) A; economic loss of $4 per unit if the firm decides to operate
B) A; economic loss of $4 so it must close
C) B; economic loss of $3 per unit
D) B; economic profit because the price exceeds average variable cost
E) C; normal profit and can stay open in the long run

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