In the above figure, when the price of a gallon of gasoline ...

[xclash]

In the above figure, when the price of a gallon of gasoline falls, which points in the above figure are used to derive points on the consumer's demand curve for gasoline?
 
  A) points A and B
  B) points A and C
  C) points B and C
  D) points A, B, and C

Question 2

If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm making?
 
  What will be an ideal response?

[cpetit11]

Answer to Question 1

B

Answer to Question 2

If the price is less than the average total cost, the firm is incurring an economic loss.

[xclash]

Great answer, keep it coming

[blakcmamba]

Thanks for the timely response, appreciate it