If Firms Are Producing at a Profit-Maximizing Level of Output

question 86

Multiple Choice

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:

• A)economic profits may be positive.
• B)accounting profits will be zero.
• C)economic profits are negative.
• D)accounting profits must be positive.

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Definitions:

Mathematical Expression

A combination of numbers, symbols, and operators designed to represent a specific mathematical computation or value.

Mathematical Expression

A combination of numbers, symbols, and operators that represent a mathematical value or relationship.

Simplification

The process of reducing expressions into their simplest form by performing operations and combining like terms.

Simplification

The process of altering a mathematical expression to make it easier to understand or work with, often by combining like terms or applying mathematical laws.