-Use the Figure Above to Answer This Question

Multiple Choice

-Use the figure above to answer this question. Consider a perfectly competitive firm in a short-run equilibrium. Figure ________ shows a firm in bad times because the firm makes a(n) ________.

A) A; economic loss of $4 so it must close
B) C; normal profit and can stay open in the long run
C) B; economic loss of $3 per unit
D) B; economic profit because the price exceeds average variable cost
E) A; economic loss of $4 per unit if the firm decides to operate