What happens if the price received by a perfectly competitive firm causes it to produce at a quantity where price equals average cost?
a. The firm earns a profit.
b. The firm earns no profit.
c. The firm earns losses.
d. The firm earns little profit.
b. The firm earns no profit.
If the price received by the firm causes it to produce at a quantity where price equals average cost, which occurs at the minimum point of the AC curve, then the firm earns no profit.
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Supply is elastic if
A) a 1 percent change in price leads to a larger percentage change in quantity supplied. B) a 1 percent change in price leads to a smaller percentage change in quantity supplied. C) the slope of the supply curve is positive. D) the good in question is a normal good.
The housing market of the early to mid-2000s did not feature:
a. "teaser rates" on home mortgages. b. a dramatic rise in housing prices. c. widespread calls to end "predatory" lending practices. d. "subprime" mortgages.
No currency ever appreciated or depreciated under the Bretton Woods system as it was based on a system of fixed exchange rates
a. True b. False Indicate whether the statement is true or false
Price discrimination leads to higher prices for all consumers.
Answer the following statement true (T) or false (F)