Author Question: In the short run, a perfectly competitive firm earning positive economic profit is A) on the ... (Read 58 times)

Bob-Dole · **on:** Jul 1, 2018

In the short run, a perfectly competitive firm earning positive economic profit is

A) on the downward-sloping portion of its ATC.
B) at the minimum of its ATC.
C) on the upward-sloping portion of its ATC.
D) above its ATC.
E) below its ATC.

Question 2

Luxury brands like designer sunglasses are goods that may exhibit snob effects. Suppose this is true, and the price for a particular brand increases. What happens to the component changes in the quantity demanded?

A) Pure price effect and snob effect are negative
B) Pure price effect and snob effect are positive
C) Pure price effect is positive, snob effect is negative
D) Pure price effect is negative, snob effect is positive