Acme is a perfectly competitive firm. It has the cost schedules given in the above table and has a fixed cost of $12.00. The price of Acme's product is $4.00
What is Acme's most profitable amount of output? What is Acme's total economic profit or loss?
Acme's most profitable (which means, in this case, minimum loss) is output of 0 units. The price is below Acme's minimum average variable cost, so Acme shuts down. Acme's economic loss equals its fixed costs, $12.00.
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The above figures show the market for HD televisions. If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.