Homework Answers
34. d) Firms will enter the market as P>ATC.
In the long run, in perfect competition, MR=MC=minimum ATC. MR= P.
35
a) The firm is making economic profit as P > ATC..
36. c) Short run equilibrium for perfect competition is when MR= MC. MR=P.
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At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
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