If the Market Price Was Below the ATC and at the Current

question 105

Multiple Choice

If the market price was below the ATC and at the current firm's rate of production the MC was less than the market price an increase in output would:

• A) cause economic profits to be positive.
• B) cause economic profits to be zero.
• C) increase profit but economic profits would still be negative.
• D) increase profit and economic profits would be positive.

---

Definitions:

Statement of Financial Position

Another term for the balance sheet, detailing a company's assets, liabilities, and equity at a specific point in time.

Inter-Fund Loans

Financial transactions involving the transfer of resources from one fund within an organization to another, typically within government or nonprofit entities.

Statement of Financial Position

Another term for balance sheet, detailing an entity’s assets, liabilities, and shareholders' equity at a specific point in time.

Consolidated Statements

Financial statements that combine the accounts of a parent company with those of its subsidiaries, presenting the financial performance and position of the group as a single entity.