Given a perfectly competitive firm, which of the following statements are true?Select one or more:In the long run, the firm can make profits greater than normal profit.O a.O b. Marginal revenue will be less than price.O C. In the short run, the firm can make profits greater than normal profit.С.O d. In the short run, average cost cannot be greater than price.

In perfect competition, there exists a large number of firms selling identical goods. There is free…

Given a perfectly competitive firm, which of the following statements are true? Select one or more: O a. In the long run, the firm can make profits greater than normal profit. O b. Marginal revenue will be less than price. c. In the short run, the firm can make profits greater than normal profit. O d. In the short run, average cost cannot be greater than price.

Given a perfectly competitive firm, which of the following statements are true? Select one or more: O a. In the long run, the firm can make profits greater than normal profit. O b. Marginal revenue will be less than price. c. In the short run, the firm can make profits greater than normal profit. O d. In the short run, average cost cannot be greater than price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a normal profit. B) zero accounting profit. C) zero economic profit. D) negative economic profit, that is, an economic loss. E) a positive economic profit.
Which describes the firms supply curve for the short run with perfect competition? O The section of MC that is above AVC O The section of MC that is above ATC There is no supply curve since it depends on the slope of demand O The section of ATC to the right of its intersection with MC Which describes the long run equilibrium situation for a firm in perfect competition? O Demand is sloping downward and tangent to ATC Demand is horizontal and tangent to the bottom of ATC O Demand is tangent to AVC O There are positive economic profits to motivate firms to keep producing
Would my answer be correct?
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Is my answer correct? i think you need information about the AVC to answer this question. I know the firm is productive at a loss, but in order to decide whether or not the firm should shut down, you have to know whether or not price is above or below AVC, right?
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this question is too confusing for me please help
Looking to see how to resolve