Figure 10-4 -Figure 10-4 Shows the Industry's Supply and Demand Curves in and Demand

question 2

Multiple Choice

Figure 10-4

-Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2) .At S₂, the firm is

• A)going to shut down.
• B)incurring losses.
• C)earning zero economic profits.
• D)earning economic profit greater than zero.