Exhibit 8.11

-Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose the market is in long-run equilibrium and demand is at d_a.At point of a,the firm _____

Question

Exhibit 8.11
Exhibit 8.11 -Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose the market is in long-run equilibrium and demand is at d<sub>a</sub>.At point of a,the firm _____ A) does not earn an economic profit. B) earns an economic profit. C) does not earn a normal profit. D) earns a normal profit. E) has a lower average total cost.

Exhibit 8.11 -Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose the market is in long-run equilibrium and demand is at d<sub>a</sub>.At point of a,the firm _____ A) does not earn an economic profit. B) earns an economic profit. C) does not earn a normal profit. D) earns a normal profit. E) has a lower average total cost.

-Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose the market is in long-run equilibrium and demand is at d_a.At point of a,the firm _____

Quizplus · Accepted Answer

At point a, the firm is earning an economic profit because price is greater than average total cost.

Exhibit 8.11 -Refer to Exhibit 8.11,which Shows a Perfectly Competitive Firm in Perfectly