3. True or False? a. A firm will make a profit when the price it charges exceeds the average variable cost of the chosen output level. b. To maximize profits in the short-run, a firm must minimize costs c. If economic profit is positive, firms will enter the market in the short run

3. True or False? a. A firm will make a profit when the price it charges exceeds the average variable cost of the chosen output level. b. To maximize profits in the short-run, a firm must minimize costs c. If economic profit is positive, firms will enter the market in the short run

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 4CQQ

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microeconomics

3. True or False?
a. A firm will make a profit when the price it charges exceeds the average variable cost
of the chosen output level.
b. To maximize profits in the short-run, a firm must minimize costs
c. If economic profit is positive, firms will enter the market in the short run

Study of decisions made by households and business firms at an individual level. It includes several laws and theorems related to demand, supply, production, allocation of resources, and prices.

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