Multiple Choice
The above figure shows some a firm's cost curves and its marginal revenue curve.
-Consider a short-run equilibrium in a perfectly competitive market.Suppose that the firms' average total cost and marginal cost schedules differ.In the short run,
A) all firms in the market must be able to make an economic profit.
B) all firms produce equal amounts of output.
C) some firms might incur an economic loss, but still produce output.
D) some firms might make an economic profit and, as a result, shut down.
E) all firms in the market must be able to make either positive or zero economic profit.
Correct Answer:

Verified
Correct Answer:
Verified
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