A perfectly competitive firm will earn a profit in the short run when it produces the...
A perfectly competitive firm will earn a profit in the short run when it produces the profit-maximizing quantity of output and the price is:
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Homework Answers
Answer
Option
4) greater than average total cost.
===
The firm produces at marginal cost =Price to maximize profit
Profit=(P-ATC)*Q
P>ATC then the firm make a profit.
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A perfectly competitive firm will earn a profit in the short run
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