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MC 10 9 8 $ per Gallon OPNW A u ovo 0 1 2 3 4 5 Y= Gallons of Milk The graph above shows
MC 10 9 8 $ per Gallon OPNW A u ovo 0 1 2 3 4 5 Y= Gallons of Milk The graph above shows the marginal cost of producing milk on Rosa's goat milk farm. Suppose the minimum level of ATC is $4, and minimum level of AVC is $2. If the price of a gallon of goat milk was $3, which of the following statements is true? Rosa will only make positive profits if she produces exactly 1 gallon of milk Rosa's best option is to shut down immediately Rosa cannot break even and earn positive profits but should continue producing Rosa can earn positive profits by producing 5 gallons of goat milk
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