question
For prices above the minimum average variable cost, a perfectly competitive firm's supply curve is
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the same as its marginal cost curve.
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A perfectly competitive firm is definitely making an economic profit when
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P > ATC
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The short-run market supply curve for a perfectly competitive market is obtained by summing the part of each firm's
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MC curve that lies above its AVC curve.
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In the short run, a perfectly competitive firm's economic profits
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might be positive, negative (an economic loss), or zero (a normal profit).
question
A perfectly competitive firm is making an economic profit when
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-its total revenue is greater than its total cost
-the price is greater than the minimum of its average total cost.
-the price is greater than the minimum of its average total cost.
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A perfectly competitive firm will have an economic profit of zero if, at its profit-maximizing output, its marginal revenue equals its
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ATC
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In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run
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an increase in market demand
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If firms in a perfectly competitive industry are making zero economic profit, then
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there is no incentive for either entry or exit.
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A perfectly competitive firm initially is earning zero economic profit. Then, a decrease in demand for the firm's product occurs. Of the following, in the long run which action listed below is the firm most likely to take?
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Exit the market.
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For a perfectly competitive firm, in the long-run equilibrium,
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P = MC = ATC = MR.
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In the long run, perfectly competitive firms earn just enough revenue to
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some firms must immediately exit.
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In a perfectly competitive market, an increase in market demand
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raises the price in the short run and attracts new firms in the long run.
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