In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A) positive economic profits are being earned.
B) firms will enter the market, causing the price to rise.
C) firms will exit the market, causing the price to fall.
D) None of these are correct.
Correct Answer:
Verified
Q136: In the long run, firms in a
Q137: In the long run, firms in a
Q138: As the equilibrium price falls in a
Q139: If firms are producing at a profit-maximizing
Q140: If firms are producing at a profit-maximizing
Q142: In reality, the long run supply curve
Q143: Which of the following holds true at
Q144: If demand in a perfectly competitive market
Q145: The graph shown represents the cost and
Q146: If demand increases in a perfectly competitive
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents