Regardless of the economic environment every firm will maxim

Regardless of the economic. environment every firm will maximize profits by operating at the minimum point of its average total cost curves, is this statement true or false ? Explain.

Solution

no this statement is not true

firm in perfect competitive market operate at minimum of ATC in long run but in short run, perfect competitive firm not necessarily operate at minimum ATC.

monopoly and monopolistic firms do not operate at minimum ATC and earn supernormal profit.