Solved

If a Perfectly Competitive Firm Is Producing at the Output

Question 45

Multiple Choice

If a perfectly competitive firm is producing at the output level where marginal revenue is equal to marginal cost and at this output level, the market price is equal to the firm's average total cost, the firm is _______.


A) not producing at the profit-maximizing output level
B) earning economic profits
C) incurring an economic loss
D) earning a competitive return

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents