In order to constantly make an economic profit in the short run, a purely competitive firm should maintain a level where d. p > atc.
The average total cost in a purely competitive market would include economic costs as well as accounting costs.
It is a known fact that in order to make profit, your costs need to be less than your revenue.
In a pure competition, your price is the same as your revenue per unit. This measure therefore needs to be larger than the average total cost.
As all the costs are accounted for in the average total cost, the difference between the price and the average total cost would be the economic profit.
In conclusion, option D is correct.
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