When a firm is earning positive economic profits, this is an indication that the firm Should leave this market in the long run. Is using its resources in the best possible way. Is using its resources in one of a number of ways that would yield positive economic profits. Is producing at the minimum ATC.

Question

Adrianna Mills

Business

18 January, 18:29

When a firm is earning positive economic profits, this is an indication that the firm Should leave this market in the long run. Is using its resources in the best possible way. Is using its resources in one of a number of ways that would yield positive economic profits. Is producing at the minimum ATC.

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Jayce Henson · Answer 1

Answer: When a firm is earning positive economic profits, this is an indication that the firm "Is using its resources in the best possible way."

Explanation: The company obtains positive benefits when it allocates a combination of resources (labor, capital, land, technology) in which according to the market in which it operates and the price of the good it manufactures allows it to obtain income greater than the costs.