The Figure Given Below Shows the Revenue and Cost Curves

question 105

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1

-A firm whose price is below its average cost:

• A)is earning negative economic profit.
• B)is earning positive economic profit.
• C)is just breaking even.
• D)is earning zero economic profit.
• E)is earning zero accounting profit.

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Definitions:

Substantially All

Pertaining to the majority or nearly the complete portion of something, often used in legal contexts concerning asset transfers.

Shareholder Approval

The process by which actions affecting a corporation and its governance must be approved by a majority of its shareholders.

Ordinary Course

Activities that are considered part of the normal, day-to-day operations of a business.

Assumes Liabilities

The act of taking on the legal debts or obligations of another party, often in the context of business transactions.