In a perfectly competitive market, if market price is lower than the average total cost of production:

A) new firms will enter the market.
B) existing firms will leave the market.
C) all existing firms will earn positive economic profits.
D) all existing firms will earn zero economic profits.

B

Economics

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Taxes constant

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According to the life-cycle hypothesis, if the average person expects to live another 48 years, the short-run MPC out of unexpected changes in income is

A) 0.52. B) 0.48. C) 0.9792. D) 0.0208.

Economics