In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A. positive economic profits are being earned.
B. firms will enter, causing the price to increase.
C. firms will exit, causing the price to drop.
D. None of these is true.
A. positive economic profits are being earned.
Economics
You might also like to view...
A movement along a demand curve is most likely to be caused by
A) a change in the population. B) a change in expectations. C) a change in income. D) a change in the price of a good.
Economics
As more people imported cars from abroad, service facilities became widely available. This increased the value of imported cars to those who owned one. This is an example of a(n) ________
A) pecuniary externality B) network externality C) moral hazard D) adverse selection
Economics