If a Profit-Maximizing Firm in a Perfectly Competitive Market Is

question 164

Multiple Choice

If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is

• A) making a positive economic profit.
• B) making a zero economic profit.
• C) suffering an economic loss.
• D) none of the above.

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