Figure 14-3 Suppose a Firm Operating in a Competitive Market Has the Has

question 398

Multiple Choice

Figure 14-3
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-3. The firm will earn positive economic profit if the market price is

• A)positive.
• B)$6.
• C)above $6.
• D)There is no price at which the firm earns positive economic profits.

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Definitions:

Lump Sum Payment

A single payment made at one time, in contrast to smaller, periodic payments.

Lump Sum Payment

A one-time payment made specifically rather than multiple smaller payments over time.

Obligations

Duties or responsibilities imposed legally or socially, requiring a person or entity to act or refrain from acting in a certain manner.

Compounded Monthly

Interest on a loan or investment calculated each month and added to the balance, so future interest accrues on a larger total.