As long as market price remains above the average total cost,and the firm chooses the profit-maximizing level of output,it will:

Question

Quizplus · Accepted Answer

If market price remains above the ATC and the firm chooses the profit-maximizing level of output, it will make profits. This is because the firm's revenue from selling the output will exceed the cost of producing the output, resulting in a positive economic profit. Therefore, option A is the best choice. Option B is incorrect because not all possibilities are possible. Option C is incorrect because the condition stated in the question does not indicate that the firm will incur a loss. Option D is also incorrect because the firm can make profits when the conditions described in the question occur.

As Long as Market Price Remains Above the Average Total