A monopolistically competitive firm makes positive economic profits if ________
A) price is less than average total cost
B) price is higher than average total cost
C) price equals marginal cost
D) price equals average fixed cost
B
Economics
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Using the above figure, of the prices below, which price enables a perfectly competitive firm to earn the maximum economic profit?
A) $4 per unit. B) $10 per unit. C) $12 per unit. D) $16 per unit.
Economics
Union contracts that have built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are
a. inappropriate ways of combating inflation b. examples of bracket creep c. means of implementing fiscal policy d. examples of steps that can be taken to decrease the adverse impacts of inflation e. examples of failed discarded policies of the 1970s
Economics