If the Price a Firm Charges in a Perfectly Competitive

question 23

Multiple Choice

If the price a firm charges in a perfectly competitive industry is greater than average total cost

• A) the firm is earning an economic profit equal to zero.
• B) the firm is earning an economic profit greater than zero.
• C) the firm is earning an economic profit less than zero.
• D) It is not possible to determine anything about profits.

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Definitions:

State University

A public university that is primarily funded by a state government.

Vesting

The process by which an individual acquires the right to a certain benefit or asset, often used in relation to pension plans and stock options.

Assents

Expressions of approval or agreement.

Obligee

A party who is entitled to receive a benefit or performance from another under the terms of a contract.