The above figure shows the cost curves for a competitive firm. If the firm is to earn economic profit, price must exceed
A) $0.
B) $5.
C) $10.
D) $11.
C
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Briefly describe and discuss the different ways a natural monopoly can be regulated: Marginal cost pricing, average cost pricing, rate of return regulation, and price cap regulation
What will be an ideal response?
A negative income tax program is:
a. b, c, d, and e. b. basically an income tax in reverse. c. based on government cash payments to the poor that are linked to their income levels. d. designed to provide a minimum level of income to the poor. e. based on cash payments that decline as income level increases.
In an open economy, we know that individuals must choose between which of the following?
A) domestic bonds and foreign currency B) foreign goods and domestic currency C) domestic and foreign bonds D) domestic goods and foreign currency E) none of the above
The ________ at which a firm's long run average cost curve is at its minimum is called the minimum efficient scale.
A. average plant size B. largest industry size C. largest plant size D. smallest plant size