Select one: O a. It is making economic losses, which means it is in a long run equilibrium. O b. It is making positive economic profits, which means it is in a long run equilibrium. It is making zero economic profits, which means it is in a short run equilibrium.

Select one: O a. It is making economic losses, which means it is in a long run equilibrium. O b. It is making positive economic profits, which means it is in a long run equilibrium. It is making zero economic profits, which means it is in a short run equilibrium.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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Question

Based on the graph of competitive firm below, what can you conclude about this firm?
Ss/unit
MC
ATC
Fin
Tim
Q in units/period
Select one:
O a. It is making economic losses, which means it is in a long run equilibrium.
O b. It is making positive economic profits, which means it is in a long run
equilibrium.
c.
It is making zero economic profits, which means it is in a short run
equilibrium.

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