Perfect Competition and the Supply Curve - Work It Out: Question 3 of 5
Suppose that the price at which Kate can sell catered meals is $21 per meal.
Which of the following statements is true?
When the price is $21, Kate will make a profit: the price is above her break-even price.
When the price is $21, Kate will make a profit in the short run but a loss in the long run: the price is between her
break-even and shut down prices.
When the price is $21, Kate should shut down: the price is below her break-even price.