Firms minimize costs; thus, a firm earning short-run economic profits will choos

Question

Firms minimize costs; thus, a firm earning short-run economic profits will choose to produce at the minimum point on its average total cost curve. Do you agree or disagree with this statement? d A. O B. O C. Disagree: Firms earning profits will produce to the right of the minimum point on the average total cost curve. Disagree: A firm minimizing costs will produce where marginal cost equals the average total cost of production Disagree: Firms earning short-run profits will produce where the difference between price and MC is largest. D. Disagree: The minimum point on the average total cost curve is when output equals zero. O E. Agree: Since firms seek to minimize costs, they will always produce at the minimum point on the ATC curve.

Explanation / Answer

Disagree. Firms earning profits will produce to the right of the minimum point on the average total cost curve.

the above is the answer

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.