The online shopping market is perfectly competitive. Profit-maximizing firms in the market are selling goods bu are currently incurring economic losses. What does this tell us about the market price?   Select one: a. Market price must be less than average total cost. b. Market price must be greater than the average variable cost. C. Market price must be equal to marginal cost. d. All of the above

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section14.3: The Supply Curve In A Competitive Market
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The online shopping market is perfectly competitive. Profit-maximizing firms in the market are selling goods bu are currently incurring economic losses. What does this tell us about the market price?

 

Select one:

a. Market price must be less than average total cost.

b. Market price must be greater than the average variable cost.

C. Market price must be equal to marginal cost.

d. All of the above.

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