If price is $5, marginal cost is $5, average total cost is $3, and the quantity produced is 150 units, then the perfectly competitive firm is
A) not maximizing economic profit.
B) earning $2 in economic profits and is maximizing economic profits.
C) earning $150 in economic profits and is not maximizing economic profits.
D) earning $300 in economic profits and is maximizing economic profits.
D
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According to Fogel and Engerman (1974), Northern farmers extensively utilized hired labor
Indicate whether the statement is true or false
At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future. B) fewer consumer goods in the future. C) fewer consumer goods today. D) more unemployed resources in the future.
What are the assumptions of the model of perfect competition? Explain why each is important for short-run and long-run equilibrium
Which two curves are tangent to each other in a monopolistically competitive market with zero economic profit?
a. demand and average variable cost b. demand and average total cost c. marginal revenue and average variable cost d. marginal revenue and average total cost