Refer to the Accompanying Graph to Answer the Following Questions

question 102

Multiple Choice

Refer to the accompanying graph to answer the following questions.

-Is this firm earning positive,negative,or zero economic profits?

• A) We cannot determine the firm's level of profit because we do not know about its revenues.
• B) It is earning positive economic profit.
• C) Because this is the short run,all firms earn positive economic profit.
• D) It is earning zero economic profit.
• E) It is earning negative economic profit.

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Definitions:

Property Rights

Legal rights to use, control, or dispose of property, including real estate, intellectual property, and personal assets.

Scarce Resources

Fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of allocation decisions.

Individual

A single human being apart from a society or community, often considered as an independent entity in economic theories.

Unskilled Labor

Labor that requires no specialized skills, education, or training, and typically involves simple tasks that can be easily learned on the job.