Multiple Choice
If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of the following statements are true except one.Which is the exception?
A) Economic profit is zero.
B) A normal profit exists.
C) Marginal cost must exceed marginal revenue.
D) Acme has excess capacity.
E) Firms have no incentive to enter or leave this industry.
Correct Answer:
Verified
Correct Answer:
Verified
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