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

question 205

Multiple Choice

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

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