Figure 6.4
-Using Figure 6.4, the perfectly competitive firm in the diagram will earn an economic profit if the market price is

Name: Figure 6.4 -Using Figure 6.4, the perfectly competitive firm in the diagram will earn an economic profit if the market price is
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Question

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In a perfectly competitive market, a firm earns an economic profit when the market price is above the average total cost (ATC). If P₄ is above the ATC curve, the firm will earn an economic profit.

Figure 6.4 -Using Figure 6.4, the Perfectly Competitive Firm in the Diagram