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Suppose Ben Owns a Small Company That Makes Kites Should Ben Shut Down?
A)Yes, Because His Economic Profit Is

Question 66

Multiple Choice

Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table.  Number d kites Per Day  Tutal Cast Per Day ($)  0100111021263148417252006235\begin{array} { | c | c | } \hline \text { Number d kites Per Day } & \text { Tutal Cast Per Day (\$) } \\\hline 0 & 100 \\\hline 1 & 110 \\\hline 2 & 126 \\\hline 3 & 148 \\\hline 4 & 172 \\\hline 5 & 200 \\\hline 6 & 235 \\\hline\end{array}  
Should Ben shut down?


A) Yes, because his economic profit is negative.
B) Yes, because he cannot earn enough revenue to cover his variable cost.
C) No, because his economic profit is positive.
D) No, because he can earn enough revenue to cover his variable cost.

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