What is always true at the quantity where a firm's average total cost equals average revenue?

A) The firm's revenue is maximized.
B) The firm's profit is maximized.
C) The firm breaks even.
D) Marginal cost equals marginal revenue.


Answer: C

Economics

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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher

Economics

An example of a capability considered in the capabilities approach would be:

A. earning a livable wage. B. living free of the fear of violence C. being able to afford a nice home. D. to have the ability to purchase an item you really want.

Economics

If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:

A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.

Economics

Domestic policies can have unintended effects on international trade

Indicate whether the statement is true or false

Economics