If a firm in a perfectly competitive market is currently producing the output where price = marginal cost = average total cost, the firm is:

A) earning a zero economic profit.
B) suffering an economic loss.
C) earning a positive economic profit.
D) all of the above

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2 Jun 2021

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65) The long-run equilibrium of a perfectly competitive market will be characterized by firms A) producing at MES and earning zero economic profits. B) producing output less than MES but earning zero economic profits. C) producing output more than MES and possibly earning positive economic profits. D) producing at MES and possibly earning negative accounting profits. E) producing output less than the MES and possibly earning negative accounting profits.

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