Use the Figure Below to Answer the Following Questions

question 132

Multiple Choice

Use the figure below to answer the following questions. Figure 13.2.3
-Refer to Figure 13.2.3.Assume this firm faces demand curve D₂.At the profit-maximizing output level,the firm

• A)incurs an economic loss.
• B)makes zero economic profit.
• C)makes an economic profit.
• D)is not in a long-run equilibrium.
• E)is producing at its efficient scale.

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Definitions:

Profitability

The state of yielding financial profit or gain, an essential measure of a company's success.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision; a crucial concept in economics and decision-making.

Brand's Social Media Activity

All actions and engagements a brand undertakes on social media platforms, including posting content, interacting with users, and promoting products.

Incremental Gain

Small, gradual improvements or advantages gained over time.