Asked by
aselefechg/selassie chkisa
on Nov 27, 2024
Verified
In the short run, a purely competitive firm will always make an economic profit if
A) P = ATC.
B) P > AVC.
C) P = MC.
D) P > ATC.
Economic Profit
The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, as opposed to accounting profit which only subtracts explicit costs.
Purely Competitive
A market structure characterized by a large number of sellers and buyers, homogeneous products, and no barriers to entry or exit.
- Become skilled at evaluating a company's economic profitability or shortfall in the short term by examining data on total revenue and total costs.
- Discriminate between the concepts of economic profits, normal returns, and losses within the domain of complete competition.
Verified Answer
MM
Learning Objectives
- Become skilled at evaluating a company's economic profitability or shortfall in the short term by examining data on total revenue and total costs.
- Discriminate between the concepts of economic profits, normal returns, and losses within the domain of complete competition.
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