Asked by
rajan maghaiya
on Nov 04, 2024
Verified
A perfectly competitive firm will earn positive economic profits in the range of output for which the firm's price is ________ its minimum average total cost.
A) below
B) above
C) equal to
D) below its marginal cost and
Positive Economic Profits
Earnings that exceed the opportunity costs of inputs, indicating that a firm is generating returns higher than the next best alternative use of its resources.
- Pinpoint the conditions facilitating firms in perfectly competitive settings to secure zero, positive, or negative economic returns.
Verified Answer
RK
Learning Objectives
- Pinpoint the conditions facilitating firms in perfectly competitive settings to secure zero, positive, or negative economic returns.