If a firm is making a short-run economic profit,

Name: If a firm is making a short-run economic profit,
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Question

Quizplus · Accepted Answer

If a firm is making a short-run economic profit, it means that its total revenue (price times quantity) is greater than its average total cost, including both fixed and variable costs. Therefore, the firm's price is higher than its average total cost. Thus, the correct option is C).

If a Firm Is Making a Short-Run Economic Profit