Fartey Frozen Yogurt s a perfectly competive fim The mai pnce of a trozen yogurt

Question

Fartey Frozen Yogurt s a perfectly competive fim The mai pnce of a trozen yogurt cake bs $7 Farkey sels 200 frozen yogurt cakes. Its AVC is $6, and its AFC is $A a. Farley Frozen Yogurt Instructions: You may select more than one answer Click th with a check mark for correct answers and click to empty the box for the wrong answers should produce in the short un should shut down will have an economic profit will have a shot run loss. will heve a normal prof b Suppose the marginal cost for a frozen yogurt cake is $7 this case, Farley Frozen Yogurt should 8 3 4 5 2

Explanation / Answer

Since the price $ 7=is greater than the AVC=$6 and less tha ATC(=6+4 =10), Farley Frozen Yogurt must produce in short run but not in the long run. There are economic profit in short run.

Thus the correct option is (a) and (c)

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