In a Perfectly Competitive Market, If Price Is Greater Than

question 29

Multiple Choice

In a perfectly competitive market, if price is greater than average total cost at the level of output where marginal cost equals marginal revenue

• A) the firm must be in long-run equilibrium.
• B) the firm is earning an economic profit greater than zero.
• C) the firm is earning an economic profit less than zero.
• D) We cannot determine whether the firm is earning positive or negative profits.

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Definitions:

Craving

A powerful desire for something, often used in the context of addictive substances.

Withdrawal

A set of symptoms that occur upon the discontinuation or decrease in intake of a substance that has been used regularly or in psychological contexts, the process of becoming emotionally detached.

Alcohol Dependence

A medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Tremors

Involuntary, rhythmic muscle movements involving oscillations or shaking of one or more body parts.