When a firm is earning positive economic profits, this is an indication that the firm Multiple...

When a firm is earning positive economic profits, this is an indication that the firm

Multiple Choice

Is using its resources in one of a number of ways that would yield positive economic profits.
Should leave this market in the long run.
Is using its resources in the best possible way.
Is producing at the minimum ATC.

Solutions

Expert Solution

Is using its resources in the best possible way.

Explanation: Economic profit takes the opportunity costs under consideration. So, when a firm earns positive economic profit, it means the firm cannot earn a higher profit by using its resources in any other way.

Rahul Sunny answered 2 years ago

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