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

As long as the market price is above the average total cost, the firm will be making a profit. If the firm chooses the profit-maximizing level of output, it will be producing at the point where marginal cost equals marginal revenue, which leads to the highest level of profit possible. Therefore, the firm will make profits in this scenario.

As Long as Market Price Remains Above the Average Total