微观经济学问题 true of false

A firm that has price (P) greater than average total cost (ATC) on its profit maximizing output (Q) can make economic profits.

In any competitive environment, a given firm will maximize its profits, or minimize its losses, if it produces and sells the amount of product on which price (P) is in greatest excess over average total cost (ATC).

Assume that P>ATC and that marginal revenue (MR) is less than marginal cost (MC) for a firm at the output (Q) that firm is presently selling in an imperfectly competitive market. And, assume that the objective of this firm is to maximize its profits. The firm should increase the amount of output it is producing and selling to realize its profit maximizing goal.

When a firm produces and sells an amount of output (Q) on which marginal cost (MC) equals average total cost (ATC) it minimizes ATC or cost per unit. But, a profit maximizing firm will not offer the cost minimizing output because doing so would not maximize the firm's profits unless product price (P) = marginal cost (MC) = average total cost (ATC). However, the P=MC=ATC condition can only be consistent with profit maximization if this firm's own demand (D) is downsloping.

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