Which of the following is NOT true about a price taking firm? a.If P* = SAC(q*), then profit = 0 b.π = q*(P* - STC/q*) c.If P* > SAC(q*), then profit < 0 d.π = q*[P* - SAC(q*)]

Which of the following is NOT true about a price taking firm? a.If P* = SAC(q), then profit = 0 b.π = q(P* - STC/q) c.If P > SAC(q), then profit < 0 d.π = q[P* - SAC(q*)]

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 15SQ

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Question

Which of the following is NOT true about a price taking firm?

a.If P* = SAC(q*), then profit = 0

b.π = q*(P* - STC/q*)

c.If P* > SAC(q*), then profit < 0

d.π = q*[P* - SAC(q*)]

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