Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table.Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 Should Ben shut down?
A. Yes, because he cannot earn enough revenue to cover his variable cost.
B. No, because his economic profit is positive.
C. Yes, because his economic profit is negative.
D. No, because he can earn enough revenue to cover his variable cost.
Answer: D
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