FIGURE 9-1
-Refer to Figure 9-1.The diagram shows cost curves for a perfectly competitive firm.The firm would incur economic profit at all market prices above

Question

Quizplus · Accepted Answer

A perfectly competitive firm incurs economic profit when the market price is above the average total cost (ATC). In the diagram, P₃ is the price level where the firm covers its ATC, so any price above P₃ results in economic profit.

FIGURE 9-1 -Refer to Figure 9-1.The Diagram Shows Cost Curves for a for a Perfectly