If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm earning?
What will be an ideal response?
If the price is less than the average total cost, the firm is incurring an economic loss.
Economics
You might also like to view...
In 2002 - 2003, some McDonalds' franchise owners reported that profits were declining from selling the discounted items from the Dollar Menu. This suggests that:
A) those items are price elastic. B) those items are price inelastic. C) those items are price unitary elastic. D) none of the above.
Economics
A fixed-weight price index provides less accurate changes than a chain-weighted system
a. True b. False Indicate whether the statement is true or false
Economics