Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 11 - Monopolistic Competition and Oligopoly - Quick Quiz for Figure 11.1 - Page 220: 3

Answer

A. Making a normal profit

Work Step by Step

At the current level of quantity, the Price and ATC are are same. This means that the firm can cover all the costs and is left with no money afterwards, which means the firm is earning a normal profit.
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