Asked by
Skyler Soukup
on Nov 04, 2024
Verified
A perfectly competitive firm will earn ________ economic profits in the range of output for which the firm's price is above its minimum average total cost.
A) positive
B) negative
C) zero
D) Any of the above answers could be correct.
Economic Profits
The financial gain made in a transaction after accounting for both explicit and implicit costs.
Average Total Cost
The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.
- Understand the concept of economic profits versus break-even points in the context of perfect competition.
Verified Answer
VR
Learning Objectives
- Understand the concept of economic profits versus break-even points in the context of perfect competition.