In the short run, a perfectly competitive firm earning positive economic profit is
A) on the downward-sloping portion of its ATC.
B) at the minimum of its ATC.
C) on the upward-sloping portion of its ATC.
D) above its ATC.
E) below its ATC.
C
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Refer to Figure 23-1. If the economy is at point J, what will happen?
A) Inventories have fallen below their desired level, and firms increase production. B) Inventories have risen above their desired level, and firms increase production. C) Inventories have risen above their desired level, and firms decrease production. D) Inventories have fallen below their desired level, and firms decrease production.
When a firm’s AC eventually starts to rise, it is often because
A. executive salaries rise sharply as output rises. B. the ability to manage larger and larger levels of output results in much higher administrative costs. C. marginal cost increases rapidly at higher output levels. D. firm output has started to decline.
Special interests are most likely to be effective at _____
a. the federal level b. the state level c. and the county level d. at the city level
Which of the following will shift today's supply curve to the right?
A) Input prices rise. B) Sales taxes increase. C) Prices are expected to be higher in the future. D) Prices are expected to be lower in the future.