A perfectly competitive firm is definitely making an economic profit when
A) MR < MC.
B) P > ATC.
C) P < ATC.
D) P > AVC.
B
You might also like to view...
What is the pure rate of interest?
What will be an ideal response?
A Consumer Price Index (CPI) adjustment overcompensates for inflation because it ignores
A) the income effect when relative prices change. B) the substitution effect when relative prices change. C) that some goods are inferior. D) that the substitution effect may offset the income effect.
According to ________, entrepreneurship does not contribute anything of value to production
A) Robert Lucas and Thomas Sargent B) Milton Friedman C) John Maynard Keynes D) Karl Marx
In competitive markets:
A) all exchanges take place involuntarily. B) there is only one seller and many buyers. C) prices play a critical role D) there is no provision for the protection of property rights.