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

Average Total Cost

Calculated by dividing total cost by the quantity of output produced; it's the cost of producing the average unit of output.

Demand Schedule

Shows how much of a given product a household would be willing to buy at different prices for a given time period.

Negative Profits

Financial losses that occur when a business's total costs exceed its total revenues, also known as net loss.