If the perfectly competitive firm is producing an output level at which price equals marginal cost, it is
A) earning profits.
B) taking losses.
C) earning normal profit.
D) There is not enough information to answer the question.
Correct Answer:
Verified
Q59: In the short-run, if P < ATC,
Q60: In order for a firm to continue
Q61: If firms are earning zero economic profits,
Q62: If an industry is in long-run competitive
Q63: Resources are allocated efficiently when
A)the exchange value
Q65: The short-run industry supply curve is the
A)horizontal
Q66: Assume a constant-cost industry that is initially
Q67: Demand increases in an increasing-cost industry that
Q68: Why must profits be zero in long-run
Q69: Exhibit 22-4
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