A perfectly competitive firm will earn ________ economic profits in the range of output for which the firm's price is above its minimum average total cost.
A) positive
B) negative
C) zero
D) Any of the above answers could be correct.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, when the price is above the minimum average total cost, the firm can cover all its costs and earn a profit, leading to positive economic profits.

A Perfectly Competitive Firm Will Earn ________ Economic Profits in the Range