The output where MC = AVC is called the
A. revenue maximizing point.
B. profit maximizing point.
C. break-even point.
D. shutdown point.
Answer: D
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Gross revenue minus explicit costs equals
A) accounting profit. B) implicit cost. C) opportunity cost. D) economic profit.
Economics is best defined as the
A) study of how people make choices to satisfy their wants. B) study of individual self-interests. C) study of how government can most efficiently raise funds by taxation. D) process by which goods are sold in free markets.
Economists develop models to
A) capture every detail of the real world. B) make their arguments more realistic. C) justify the assumptions they make about people's behavior. D) help us understand economic phenomena in the real world.
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, fixed costs must be:
A. $200. B. $10. C. $60. D. Fixed costs cannot be determined by the information in the table.