Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
-Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is

Question

Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:  ​
-Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is

Quizplus · Accepted Answer

The firm will earn a positive economic profit in the short run if the market price is above its average total cost. Without the figure, the assumption is that $13 represents a point where price equals average total cost, so any price above $13 would result in economic profit.

Figure 14-1 Suppose That a Firm in a Competitive Market Has the Has