Insurance can be profitable when it

Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand and cost curves for his firm, which competes in a monopolistically competitive market

If Kevin trains 5 clients per day, he will ________ his profit and will ________. A) maximize; earn normal profit B) not maximize; earn a normal profit anyway C) maximize; earn an economic profit D) not maximize; earn an economic profit anyway E) not maximize; incur an economic loss

Costs that have already been incurred, and which cannot be recovered, are known as

A) short-run fixed costs. B) unavoidable costs. C) sunk costs. D) implicit costs.