Answered: If P = MC and MC > ATC, then a…

If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits. A) break-even B) positive C) zero D) negative

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 1SQP

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Question

31) If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A) break-even B) positive C) zero D) negative

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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