As long as market price remains above the average total cost, and the firm chooses the profit-maximizing level of output, it will:
A. make profits.
B. earn zero profits.
C. make a loss.
D. Any of these is possible.
A. make profits.
You might also like to view...
In the simple Keynesian framework, the price level
A) is fixed. B) varies directly with unemployment. C) varies inversely with wages. D) is indeterminate.
Unemployment insurance:
A. varies widely across countries. B. has a set minimum in the US. C. is typically 32 weeks in the US, except for times of unusually high unemployment. D. All of these are true.
When economic profits are zero for a firm in a perfectly competitive market, it means that:
A. average total costs are zero. B. price is equal to minimum average total cost. C. MR is equal to AVC. D. average variable costs are minimized.
Price ceiling/ cap
What will be an ideal response?