Question 5 4 pts A positive economic profit signals that the

Question 5 4 pts A positive economic profit signals that the investors of a firm should divert their funds to alternative ventures True False Question 6 4 pts A perfectly competitive firm\'s supply curve is the portion of the MR curve that lies above the MC curve TC curve that lies above the TR curve AFC curve that lies above the AR curve. AVC curve that lies above the ATC curve. MC curve that lies above the AVC curve

Solution

ans 5 The correct answer is B. false.
If something is good, then there is no need to change it if there are no problems at all. If this company is making a profit because of a venture they invested in, then why would they seek alternative ventures and risk losing the profit they gained.

ans 6 option e is correct mc lies above the AVC

ans 7 false The existence of barriers to entry make the market less contestable and less competitive. The greater the barriers to entry which exist, the less competitive the market will be. Barriers to entry are an essential aspect of monopoly markets.

ans 8 option d is correct. price of the whiskey remain unchanged and the existing firm would continue to earn zero economic profit