Answer to Question #217125 in Macroeconomics for NA Desalegn

Question #217125

The above figure shows the cost curves for a What must be the minimum price for the firm to earn economic profit?


1
Expert's answer
2021-07-19T01:20:02-0400

The firm gets negative profits if the price it receives induces it to produce at a quantity where price equals average cost, which occurs at the AC curve's minimum point.


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