Refer to Figure 9.3. This firm will ________ if price is between $7 and $13.

A) earn an economic profit
B) shut down in the short run, but operate in the long run
C) continue to operate in the short run, but incur an economic loss
D) shut down

Economic Profit

The distinction between the income generated from selling a product and the opportunity cost of the resources utilized.

Price

Price is the amount of money required to purchase a good or service, often determined by the balance of supply and demand in a market.