If a profit-maximizing, perfectly competitive firm is making only a normal profit in the short run, then the firm is in:
a. disequilibrium.
b. equilibrium where MR exceeds minimum ATC.
c. equilibrium where MR equals minimum AVC.
d. equilibrium where P = AFC.
e. equilibrium where P = ATC
e
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The indifference curve in the above figure
A) could illustrate a person's preferences for identical computer disks made by two different companies. B) could illustrate a person's preferences for right-handed and left-handed gloves. C) has a marginal rate of substitution that at first decreases and then increases. D) None of the above statements is correct.
By selling products in both retail stores and outlet stores, firms can increase their profits by charging ________ prices to consumers with a low price elasticity of demand and ________ prices to consumers with a higher price elasticity of demand
A) higher; lower B) lower; lower C) higher; higher D) lower; higher
The demand for firewood is likely to be more elastic in the summer than in the winter
Indicate whether the statement is true or false
Individual banks always respond quickly and significantly to changes in the discount rate
a. True b. False Indicate whether the statement is true or false