The Figure Above Shows Some of a Firm's Cost Curves

question 130

Multiple Choice

The figure above shows some of a firm's cost curves and its marginal revenue curve.
-Suppose the price of a can was $5.10.In this case,to maximize its profit,the firm illustrated in the figure above would

• A) decrease its production and would make an economic profit.
• B) not change its production and would make zero economic profit.
• C) not change its production and would make an economic profit.
• D) decrease its production and would incur an economic loss.
• E) not change its production and would incur an economic loss.

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Definitions:

Unenforceable

A term describing a contract or clause that cannot be upheld or compelled by law.

Not in Writing

Refers to agreements or communications that haven't been formally recorded on paper or in any digital format.

Electric Pencil Sharpener

A device powered by electricity used for sharpening pencils through a rotating mechanism.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," which places the responsibility on the buyer to perform due diligence before making a purchase.