Which would indicate that a firm is operating under conditions of pure competiti
ID: 1187833 • Letter: W
Question
Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient? Answer It is making economic profits in the long run Marginal cost equals average variable cost It produces at the minimum average total cost Its marginal revenue is less than average revenue Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient? It is making economic profits in the long run Marginal cost equals average variable cost It produces at the minimum average total cost Its marginal revenue is less than average revenue It is making economic profits in the long run Marginal cost equals average variable cost It produces at the minimum average total cost Its marginal revenue is less than average revenueExplanation / Answer
It produces at the minimum average total cost
Reason
Under pure competition, this outcome will be achieved, as the long run equilibrium price of pure competitive firms would be at the min ATC .
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