Refer to Figure 14-1. If the market price rises above $13, the firm will earn

A) positive economic profits in the short run.
B) negative economic profits in the short run but remain in business.
C) negative economic profits and shut down.
D) zero economic profits in the short run.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit costs and opportunity costs, indicating the firm's financial performance beyond breaking even.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.