Question 3 Which statement is TRUE? O a. Economic profit is always positive in the short run O b. Economic profit results when a firm covers its variable costs c. If price falls below the average variable cost, the firm will continue to operate with economic losses O d. Average revenue and marginal revenue are the same in perfect competition

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 19RQ: When the price is above the equilibrium, explain how market forces move me market price to...
icon
Related questions
Question

Please solve both the following questions .  I will give you thumbs up . Thank you

Question 3
Which statement is TRUE?
O a. Economic profit is always positive in the short run
O b. Economic profit results when a firm covers its variable costs.
c. If price falls below the average variable cost, the firm will continue to operate with economic losses
Od. Average revenue and marginal revenue are the same in perfect competition
Transcribed Image Text:Question 3 Which statement is TRUE? O a. Economic profit is always positive in the short run O b. Economic profit results when a firm covers its variable costs. c. If price falls below the average variable cost, the firm will continue to operate with economic losses Od. Average revenue and marginal revenue are the same in perfect competition
_actions have no effect on the market price of the good or service that they sell.
O a. price analyst's
A
O b. price setter's
C. price-taking producer's
O d. price-making producer's
Transcribed Image Text:_actions have no effect on the market price of the good or service that they sell. O a. price analyst's A O b. price setter's C. price-taking producer's O d. price-making producer's
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cash Flow
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning