The above figure shows three possible average total cost curves
If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC1, each produce 30 units, and the market price of the good is $16 per unit, then the firms A) make zero economic profit and new firms enter the market.
B) make zero economic profit and no firms enter or exit the market.
C) make zero economic profit and some firms exit the market.
D) incur an economic loss and some firms exit the market.
E) make an economic profit and new firms enter the market.
B
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An overvalued domestic currency:
A) can be achieved by selling the domestic currency. B) harms all the economic agents in the country. C) makes imports less expensive for domestic consumers. D) benefits all the economic agents in the country.
The "Great Society" initiative led to the creation of
a. Medicare. b. Rent subsidies for the poor. c. the Department of Transportation. d. the Department of Housing and Urban Development. e. All of the above.