In the short run, if a perfectly competitive firm is producing at a price above average total cost, its economic profit must be:
A) positive.
B) zero.
C) negative.
D) normal.

Question

Quizplus · Accepted Answer

If a perfectly competitive firm is producing at a price above average total cost, it means the firm is covering all its costs and making more, resulting in a positive economic profit.

In the Short Run, If a Perfectly Competitive Firm Is