**Question 9:** A perfectly competitive firm is making a loss if: - Price is greater than average total cost - Price is equal to average total cost - Price is less than average total cost - Marginal cost is equal to marginal revenue This multiple-choice question assesses understanding of the conditions under which a perfectly competitive firm experiences losses. The correct answer is when the price is less than average total cost, as this indicates that the firm is not covering its costs.

We have to find a perfectly competitive firm is making a loss. We know that , a perfectly competitive firm maximize his profits where marginal revenue is equal to marginal cost .when price is greater than average total cost the firm incur profit but when price is less than the average total cost the firm incur loss .So , correct answer is option C .

Answered: A perfectly competitive firm is making…

Business

Economics

A perfectly competitive firm is making a loss if

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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