Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If a perfectly competitive firm finds at the quantity where MR=MC that price is greater than AVC but less than ATC, the firm will be
If a perfectly competitive firm finds at the quantity where MR=MC that price is greater than AVC but less than ATC,
the firm will be earning positive economic profits.
the firm will immediately shut down.
the firm will produce in the short run, and new firms would tend to enter the industry over time.
the firm will produce in the short run, but may eventually go out of business over time.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started