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The Figure Given Below Shows the Revenue and Cost Curves

Question 105

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1    -A firm whose price is below its average cost: A) is earning negative economic profit. B) is earning positive economic profit. C) is just breaking even. D) is earning zero economic profit. E) is earning zero accounting profit.
-A firm whose price is below its average cost:


A) is earning negative economic profit.
B) is earning positive economic profit.
C) is just breaking even.
D) is earning zero economic profit.
E) is earning zero accounting profit.

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