Assume the xyz corporation is producing 20 units of output. it is selling this output in a purely competitive market at $10 per unit. its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. this corporation:
a. should close down in the short run.
b. is maximizing its profits.
c. is realizing a loss of $60.
d. is realizing an economic profit of $40.

Economic profit will be $40

So option (d) will be correct option

Explanation:

We have given number of units produced = 20 units

Price of per unit = $10 per unit

So revenue = 20×$10 = $200

Revenue :20 units * $10 = 200

Fixed cost is given $100

Variable cost: 20 units ×$3 = 60

So total cost= Fixed cost + Variable cost = 100 + 60 =$160

So economic profit = Revenue - Total cost = 200 - 160 = $40

So option (d) will be correct answer