If the Price of a Product Consistently Exceeds Its Average

question 27

Multiple Choice

If the price of a product consistently exceeds its average cost, one can definitely conclude that the firm:

• A) is earning a normal rate of return.
• B) is maximizing its long-run profit.
• C) is producing at its most efficient level of output.
• D) is earning a positive economic profit.
• E) is producing at the minimum efficient scale.

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Definitions:

Muscles

Tissue in the body that contracts to create movement or force.

Position

A specific location or arrangement in space that an object or entity occupies at any given time.

Location

The specific place or position where something exists or is situated.

Cutaneous Sensations

Sensory experiences originated in the skin, including touch, pressure, heat, cold, and pain.