If the short-run supply curve,the demand curve,and the long-run supply curve all intersect at the same point,firms will experience ________ economic profits,which means the price is ________ the minimum point on the average total cost curve.
A) positive; above
B) zero; at
C) negative; below
D) negative; at
E) zero; above

Question

Quizplus · Accepted Answer

If the short-run supply curve, the demand curve, and the long-run supply curve all intersect at the same point, it indicates that the market is in equilibrium. Therefore, firms will experience zero economic profits, which means the price is at the minimum point on the average total cost curve.

If the Short-Run Supply Curve,the Demand Curve,and the Long-Run Supply