The Diagram Below Shows the Short- Run Cost Curves for 3

question 116

Multiple Choice

The diagram below shows the short- run cost curves for 3 perfectly competitive firms in the same industry. FIGURE 9- 6
-Refer to Figure 9- 6. Which of the following statements about Firms A, B and C is true?

• A) Firm A is earning profits, Firm B is breaking even, and Firm C is suffering losses.
• B) Firms A, B and C are earning profits.
• C) Firm A is breaking even, Firm B is suffering losses, and Firm C is earning profits.
• D) Firm A is suffering losses, Firm B is breaking even, and Firm C is earning profits.
• E) Firms A, B and C are breaking even.

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