Zoe,the Owner of Zoe's Bakery,determines That,at Her Optimal Level of Production

question 162

Multiple Choice

Zoe,the owner of Zoe's Bakery,determines that,at her optimal level of production in the short run,P < ATC and P > AVC.In the short run,Zoe should:

• A)continue to operate,even though she is taking an economic loss.
• B)continue to operate,as she is making an economic profit.
• C)shut down immediately,as she is taking an economic loss.
• D)raise the price until she has maximized her profits.