Tags
#cfa #cfa-level-1 #economics #has-images #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit

Question
Economic profit occurs when [...]
price is greater than ATC.

Remember RRR is taken as a fixed cost.

Tags
#cfa #cfa-level-1 #economics #has-images #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit

Question
Economic profit occurs when [...]
?

Tags
#cfa #cfa-level-1 #economics #has-images #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit

Question
Economic profit occurs when [...]
price is greater than ATC.

Remember RRR is taken as a fixed cost.
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#### Parent (intermediate) annotation

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Point D, which corresponds to output Q 3 , is a position where economic profit occurs because price is greater than ATC.

#### Original toplevel document

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cost. However, in the long run, to remain in business, the price must cover all costs. Therefore, in the long run, at any price below the breakeven point, the firm will exit the market, i.e., the firm will no longer participate in the market. <span>Point D, which corresponds to output Q 3 , is a position where economic profit occurs because price is greater than ATC. In the case of perfect competition, the breakeven point is the quantity where price, average revenue, and marginal revenue equal average total cost. It is al

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