Asked by
Moindy Dukuray
on Nov 04, 2024
Verified
If a perfectly competitive firm's average total cost curve is below its demand schedule at any level of output, then the firm will earn ________ profits.
A) positive
B) break-even
C) negative
D) zero
Average Total Cost
The total cost divided by the quantity of output produced, representing the cost per unit of output.
Demand Schedule
A table that shows the quantity demanded of a good or service at different price levels, illustrating the relationship between price and demand.
- Acquire an understanding of the difference between economic profits and break-even points within a perfectly competitive environment.
Verified Answer
BD
Learning Objectives
- Acquire an understanding of the difference between economic profits and break-even points within a perfectly competitive environment.