In the figure at right, at which output level is this firm earning negative economic profits? OA. 12 OB. 2 OC. 5 OD. 10 Revenues and Costs ($) 180 160- 140- 120- 100+ 80- 60- 40- 20- 0 0 2 4 6 8 TC 10 12 14 16 Quantity TR 18 20

In the figure at right, at which output level is this firm earning negative economic profits? OA. 12 OB. 2 OC. 5 OD. 10 Revenues and Costs ($) 180 160- 140- 120- 100+ 80- 60- 40- 20- 0 0 2 4 6 8 TC 10 12 14 16 Quantity TR 18 20

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 11RQ: What is die difference between accounting and economic profit?

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Question

In the figure at right, at which output level is this firm earning negative economic profits?
O A. 12
OB. 2
OC. 5
O D. 10
Revenues and Costs ($)
180
160-
140-
120
100+
80-
60-
40-
20-
of
0
2
4
6
8
10
Quantity
12
14
TC
TR
16 18 20

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