If price is equal to average variable cost a perfectly competitive firm breaks

If price is equal to average variable cost a

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75) If price is equal to average variable cost, a perfectly competitive firm breaks even. 75) Answer: TrueFalse Diff: 1 Page Ref: 406 - 407/406 - 407 Topic: Profit Learning Outcome: Micro 13: Explain the relationship between production and profits under perfect competition AACSB: Reflective Thinking 24
76) For a given quantity, the total profit of a perfectly competitive firm is equal to the vertical distancebetween the firmʹs total revenue curve and its total cost curve.76) Diff: 1 Page Ref: 406 - 407/406 - 407 Topic: Profit Learning Outcome: Micro 13: Explain the relationship between production and profits under perfect competition AACSB: Reflective Thinking ESSAY. Write your answer in the space provided or on a separate sheet of paper. 77) If firms do not earn economic profits in a competitive equilibrium, why would the firms choose to stay inbusiness? Diff: 3 Page Ref: 406 - 407/406 - 407 Topic: Profit Learning Outcome: Micro 13: Explain the relationship between production and profits under perfect competition AACSB: Reflective Thinking SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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