It is earning zero economic profit. It is earning negative economic profit. Beca
ID: 1128137 • Letter: I
Question
It is earning zero economic profit.
It is earning negative economic profit.
Because this is the short run, all firms earn positive economic profit.
We cannot determine the firm’s level of profit because we do not know about its revenues.
It is earning positive economic profit.
a.It is earning zero economic profit.
b.It is earning negative economic profit.
c.Because this is the short run, all firms earn positive economic profit.
d.We cannot determine the firm’s level of profit because we do not know about its revenues.
e.It is earning positive economic profit.
MC ATC AVC Q1 2 Q3 Q4Explanation / Answer
Because there is no information about the revenues the firm is making, we can't evaluate how much the firm is producing which would have given information about the cost the firm is incurring. And, consequently, we can't identify the amount of profits firm is making.
OPTION D
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