Which of the following is true of a perfectly competitive firm?
a. The firm is a price maker.
b. If the firm wishes to maximize profits it will produce an output level in which total revenue equals total cost.
c. The firm will not earn an economic profit in the long run.
d. The firm's short-run supply curve is its MC curve below its AVC curve.
c
Economics
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In 2008 and 2009, the budget deficit increased substantially because of
a. the weak economy. b. extraordinary spending. c. reduced tax receipts. d. all of the above
Economics
If a 5 percent cut in the price of a product causes the quantity demanded to rise by 10 percent, the demand is:
A. Inelastic B. Elastic C. Unit elastic D. Perfectly elastic
Economics