If a perfectly competitive firm finds that price is less than its ATC, then the firm
A) will raise its price to increase its economic profit.
B) will lower its price to increase its economic profit.
C) is making an economic profit.
D) is incurring an economic loss.
E) is making zero economic profit.
D
Economics
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Firms that can effectively price discriminate
A) can be either perfectly competitive firms or monopolies. B) can prevent the resale of their products. C) have only one class of buyers, buyers willing to pay a high price. D) Both answers A and B are correct. E) Both answers A and C are correct.
Economics
The Resolution Trust Corporation was created by the FIRREA in order to
A) manage and resolve insolvent S&Ls. B) build up trust in government regulation. C) regulate the S&L industry. D) purchase large amounts of government debt.
Economics