A perfectly competitive firm definitely makes an economic profit in the short run if price is

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm can earn economic profit if the price is greater than the firm's average total cost. This is because the firm can produce output at a lower cost than the market price, resulting in positive profit for the firm. If the price is equal to or less than the average total cost, the firm will only be able to cover its costs and will earn zero economic profit.

A Perfectly Competitive Firm Definitely Makes an Economic Profit in the Short