If a perfectly competitive firm's average total cost curve is above its demand schedule at every level of output, then the firm will earn ________ profits.
A) positive
B) break-even
C) negative
D) zero

Question

Quizplus · Accepted Answer

If a firm's average total cost curve is above its demand schedule at every level of output, it means the firm's costs are higher than the prices it can charge for its products, leading to losses (negative profits).

If a Perfectly Competitive Firm's Average Total Cost Curve Is