-Refer to this diagram for a perfectly competitive producer.If product price is P₃: A)the business will be maximizing its profits B)the business will realize a normal profit C)economic profits will be positive D)the business has reached its shutdown point E)the business will be making an economic profit

Question

Quizplus · Accepted Answer

In a perfectly competitive market, when price equals average total cost (ATC), the firm is making a normal profit, which means it is covering all its costs, including opportunity costs, but not making an economic profit.

-Refer to This Diagram for a Perfectly Competitive Producer