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Author Question: A perfectly competitive firm maximizes its profit by producing the level of output so that its ... (Read 73 times)

moongchi

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on: Jun 29, 2018
A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.
 
  Indicate whether the statement is true or false

Question 2

Which of the following statements regarding an average-cost pricing rule for a natural monopoly is WRONG?
 
  A) It sets price equal to average total cost.
  B) It is efficient.
  C) The firm makes zero economic profit.
  D) More output is produced than if the firm maximized profit.


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soda0602

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Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

B


moongchi

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  • Posts: 516
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

yeungji

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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