Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Get quick and reliable solutions to your questions from a community of experienced professionals on our platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
If a competitive firm’s marginal revenue is equal to marginal cost, the firm is earning positive economic profits when the price is above the average cost.
If the price exceeds average total cost, then the firm generates the economic profit, it means the profit which is above normal profit by production of the quantity that equates marginal revenue and marginal cost.
However, if the price falls below average total cost, then the firm faces an economic loss.
The average cost pricing rule is a standardized pricing rule which the regulators impose on certain businesses in order to limit what those companies are able to charge their consumers for its products or services to a price which is equal to the costs necessary to create the product or service.
To know more about average cost here:
https://brainly.com/question/13950634
#SPJ4
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
