If perfectly competitive firms are producing at a profit-maximizing level of output where the price is equal to the average total cost: Select one: a. average total cost must be minimized. O b. economic profits must be zero. c. accounting profits must be positive. d. All of these are true. Clear my choice

If perfectly competitive firms are producing at a profit-maximizing level of output where the price is equal to the average total cost: Select one: a. average total cost must be minimized. O b. economic profits must be zero. c. accounting profits must be positive. d. All of these are true. Clear my choice

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

In the short run, profits when a competitive firm shuts down are-$8200, and they are -$350 when the firm continues to produce. This firm will minimize losses in the short run by Choose one: A. either shutting down or continuing to produce. O B. continuing to produce. O C. shutting down.
For a perfectly competitive firm operating in the short run, in order to maximize profits it should produce output where: a.marginal cost equals average variable cost. b.marginal cost equals average total cost. c.marginal cost equals price. d.total cost equals total revenue.
I need solutions of C, D, E. Thank in advance.
Please show all work. Thank you!
Any help would be greatly appreciated
A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its Select one: a. average variable cost. b. marginal revenue. c. average total cost. d. average fixed cost. Clear my choice
Looking to see how to resolve
Suppose a firm in a perfectly competitive industry is currently producing output at its profit-maximizing quantity. If the firm's marginal cost is less than its average total cost, MC < ATC, the firm will earn ________ profits. a.negative b.positive c.zero d.break-even
1. a. Given the following information, state whether the perfectly competitive firm will shut down or continue to produce in the short run: Q = 100, P=$12, ATC = $10, AVC = $4. Draw the corresponding diagram as wellI. %3D b. Calcuate the following: i. Average fixed cost ii. Total Profit
Discuss the shape of the long-run supply curve in a perfectly competitive market. The long-run supply curve is A. an upward-sloping line equal to the sum of the portion of each firm's marginal cost curve that is above minimum average variable cost. B. a horizontal line equal to the minimum point on the typical firm's average total cost curve. C. an upward-sloping line equal to the sum of each firm's marginal cost curve. D. a horizontal line equal to the minimum point on the typical firm's average variable cost curve. E. an upward-sloping line equal to the sum of each firm's supply curve. Suppose that the perfectly competitive market illustrated in the graph to the right is initially in long-run equilibrium (at P₁) and then there is a permanent decrease in the demand for the product (to D₂). Show how the market adjusts in the long run. 1.) Use the line drawing tool to add either a new demand curve or a new supply curve showing the market in long-run equilibrium. Properly label this…
Perfectly competitive firms are price takers because. . Select one: a. Their demand curves are downward sloping. b. There are no good substitutes for their goods. c. Many other firms produce identical products d. Each firm is very large
I need help with econ multiple hw questions asap! 64)In a competitive market that is characterized by free entry and exit, what will be the result? A. All firms will operate at efficient scale in the short run. B. The number of sellers in the market will steadily decrease over time. C. All firms will operate at efficient scale in the long run. D. The price of the product will differ across firms. 63)Where is the competitive firm’s short-run supply curve located? A. the part of the average-total-cost curve that lies above marginal cost B. the part of the average-variable-cost curve that lies above marginal cost C. the part of the marginal-cost curve that lies above average variable cost D. the part of the marginal-cost curve that lies above average total cost