Another micro question

Test Preparation AP Test Preparation
1

<p>How is zero economic profit represented on the graph? Is it an intersection of two curves? If so, which two curves? When p=ATC???</p>

2

<p>on what graph?
if it’s perfect competitor, then it’s when MR = MC –> when P = MC, not ATC</p>

3

<p>^Monopolistic competition</p>

<p>Besides, doesn’t perfect competitor always earn zero economic profit?</p>

4

<p>In the long run yes.</p>