If the price a firm charges in a perfectly competitive industry is greater than average total cost:
A. the firm is earning an economic profit equal to zero.
B. the firm is earning an economic profit greater than zero.
C. the firm is earning an economic profit less than zero.
D. it is not possible to determine anything about profits.
Answer: B
You might also like to view...
If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing banana splits
Indicate whether the statement is true or false
A kinked demand curve is associated with
a. perfect competition. b. monopolistic competition. c. an oligopoly. d. public utilities.
During the early 1920s in Germany, prices
a. doubled annually. b. doubled monthly. c. tripled monthly. d. tripled annually.
The balance of payments records transactions between:
(a) Households and firms in a particular country. (b) Residents of one country and the rest of the country. (c) Residents of one country and the rest of the world. (d) Between residents of all EU countries only.