Assume a profit maximizing firm’s short-run cost is TC = 700 + 60Q. If

Assume a profit maximizing firm’s short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 – 15Q, what should it do in the short run?

A) shut down
B) continue operating in the short run even though it is losing money
C) continue operating because it is earning an economic profit
D) Cannot be determined from the above information

ANSWER

C