In Figure 5.8, if the supply curve moves from S2 to S4,
A. the firm will make a smaller economic profit than they used to.
B. the firm will go from making an economic profit to a loss but one that is not big enough to make it want to shutdown.
C. the firm will go from making an economic profit to a loss that is big enough to make it want to shutdown.
D. the firm will go from making an economic profit to a normal profit.
Answer: B
Economics
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