Economic profit is
A. P(q-ATC).
B. Pq/ATC.
C. (P?ATC)q.
D. (P+ATC)q.
Answer: C
You might also like to view...
Which of the following is not true in the long-run?
a. There are no variable costs. b. There are no fixed costs. c. Total costs equal variable costs. d. Identical firms will make zero profits.
If firms in monopolistic competition are earning economic profits, then
A) they can expect to earn the profits indefinitely. B) new rivals enter the industry, and the demand for any seller's good decreases. C) the market demand becomes more inelastic. D) the industry is in long-run equilibrium. E) new rivals enter the industry, and the demand for any seller's good increases.
A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups
a. True b. False Indicate whether the statement is true or false
It is clear from the text that most economists assume the primary goal of all firms is to
a. maximize sales b. minimize cost c. maximize efficiency d. maximize profit e. minimize loss