1)When a perfectly competitive firm is at its profit-maximizing level of output, we can say that it A) is producing where MC = AC. B) is producing where price exceeds marginal cost. C) is doing as well as it can and is making a profit. D) may be making a profit or incurring a loss. E) is producing where P = AVC. note: please tell me the explanation as well. 2 -In long-run equilibrium a perfectly competitive industry A) losses are tolerable because of the high fixed cost. B) in order to stay in the industry each firm is making an economic profit. C) each firm is producing at the minimum point on its LRAC curve. D) individual firms will have no incentive for technological improvement. E) must exhibit economies of scale.
1)When a
A) is producing where MC = AC.
B) is producing where price exceeds marginal cost.
C) is doing as well as it can and is making a profit.
D) may be making a profit or incurring a loss.
E) is producing where P =
note: please tell me the explanation as well.
2 -In long-run equilibrium a perfectly competitive industry
A) losses are tolerable because of the high fixed cost.
B) in order to stay in the industry each firm is making an economic profit.
C) each firm is producing at the minimum point on its LRAC curve.
D) individual firms will have no incentive for technological improvement.
E) must exhibit economies of scale.
note: please tell me the explanation as well.
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