Asked by
cesar cuevas
on Oct 27, 2024
Verified
A perfectly competitive firm is definitely earning an economic profit when:
A) MR > MC.
B) P > ATC.
C) P > MC.
D) P < ATC.
Economic Profit
The difference between the total revenue received by a business and the total implicit and explicit costs of a business.
ATC
Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.
- Distinguish between economic profit, total revenue, and total cost in the context of perfect competition.
Verified Answer
LD
Learning Objectives
- Distinguish between economic profit, total revenue, and total cost in the context of perfect competition.
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