Question

In: Economics

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.


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