If the price a firm charges in a perfectly competitive industry is less than average total cost:
A) the firm is earning positive economic profit.
B) the firm is earning zero economic profit.
C) the firm is earning negative economic profit.
D) it is not possible to determine anything about profits.
Correct Answer:
Verified
Q65: Q67: In a perfectly competitive market, if price Q70: If a profit-maximizing firm in a perfectly Q70: If a profit-maximizing firm in a perfectly Q73: If a perfectly competitive firm charges a Q79: In short-run equilibrium for a competitive firm Q80: If a competitive firm is in short-run Q95: A perfectly competitive firm that is maximizing Q98: Suppose that the market price of sugar Q100: For a perfectly competitive firm, price always
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents