Econ 7
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Which of the following is true of a perfectly competitive industry?
In a perfectly competitive industry, a firm can determine the quantity of its output.
In long-run equilibrium, a perfectly competitive firms produces at the output level at which:average total cost is minimized.
average total cost is minimized.
The position of a perfectly competitive firm's demand curve remains constant with change in the market price.
false
Figure 7-4 shows the relationship between the various costs of a perfectly competitive firm. In the figure, when the market price equals $105 and the firm sells 675 units of output, the firm:
is earning positive economic profit.
