Scenario: The fixed cost of producing 500 units of Good Y is $25,000, while the variable cost of producing 500 units of Good Y is $60,000.
A firm producing Good Y will _____
A. incur losses if it charges a price of $200
B. earn economic profits if it charges a price of $120
C. shut down production if price falls below $200
D. earn zero economic profits if it charges a price of $170