Exhibit 8-13
-For the market shown in Exhibit 8-13, at what price will a perfectly competitive firm earn zero profit?

Name: Exhibit 8-13 -For the market shown in Exhibit 8-13, at what price will a perfectly competitive firm earn zero profit?
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Question

Exhibit 8-13 
-For the market shown in Exhibit 8-13, at what price will a perfectly competitive firm earn zero profit?

Quizplus · Accepted Answer

In a perfectly competitive market, a firm earns zero profit when the price equals the average total cost (ATC). The price of $8 is likely where the ATC curve intersects the demand curve, indicating zero economic profit.

Exhibit 8-13 -For the Market Shown in Exhibit 8-13, at What Price