When a firm's demand curve is tangent to its average total cost curve,the
A) firm's economic profit is zero.
B) firm may be earning economic profits.
C) firm must be operating at its efficient scale.
D) Both a and c are correct.
Correct Answer:
Verified
Q175: Figure 16-6 Q228: Because a monopolistically competitive firm has some Q229: If firms in a monopolistically competitive market Q367: As firms exit a monopolistically competitive market, Q368: The free entry and exit of firms Q374: If firms in a monopolistically competitive market Q375: In a monopolistically competitive market, Q377: Long-run profit earned by a monopolistically competitive Q380: In monopolistically competitive markets, economic losses Q384: New firms will likely enter a monopolistically
A)entry by new
A)suggest that
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