If a Firm Sells Its Output at a Price Greater

question 62

True/False

If a firm sells its output at a price greater than AC, it will earn economic profit.

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Definitions:

Oligopoly

A market structure characterized by a small number of large firms dominating the market, which have significant control over price and high barriers to entry.

Nineteenth Century

The period from 1801 to 1900, characterized by industrialization, colonial expansion, and significant social, economic, and political changes.

Railroads

Transportation systems using trains to move goods and passengers along tracks, playing a key role in economic development by facilitating trade and movement.

Price War

A collapse of prices when tacit collusion breaks down.