Explain whether a firm's decisions are optimal if economic profit is (a) positive, (b) zero, or (c) negative
If economic profit is positive, then the firm's decisions are optimal; that is, its price and output yield a profit larger than any alternative prices and outputs.
If economic profit is zero, then the firm's choices are still satisfactory, because its price and output yield as much profit as the best available alternative.
If economic profit is negative, then the choice is not optimal; there exists at least one alternative price-output combination that is more profitable.
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The Federal Open Market Committee is a. the group at the Federal Reserve that sets monetary policy. b. in charge of tax collection
c. the group that sets the amount of government spending. d. the group that reviews income assistance programs.
Changing the labels on isoquants without changing the shapes of the isoquants implies no change in the underlying technology so long as the ordering of isoquants is preserved.
Answer the following statement true (T) or false (F)