Which of the following statements in the full competitive market is correct?Choose an answer1. The companies maximize their profit according to the rule «price equalsaverage total costs».O 2. The companies maximize their profit according to the rule "marginal costs equalaverage total costs".3. In the short term, the companies always make a profit.O 4. In the short-term market result, it always applies that the market price is above the averagetotal costs.5. In the long-term market result, the market price corresponds to the average total costs.

In a competitive market, firms face a very high degree of competition that affects their gain from…

Answered: Which of the following statements in…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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