Assume the market price is greater than average total cost at the perfectly competitive firm's profit-maximizing level of output
In this case, the firm is earning positive economic profits, which act as an incentive for new firms to enter the market. Indicate whether the statement is true or false
TRUE
Economics
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Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would rise and exceed national saving. B) It would fall to a level equal to national saving. C) It would not change. D) It would rise to a level equal to net foreign investment.
Economics
Describe the scope of economic profit in the long run for a perfectly competitive firm
What will be an ideal response?
Economics