Asked by
Britney Garcia
on Oct 12, 2024
Verified
Which statement is true?
A) Price is calculated by dividing output by total revenue.
B) The lowest point on the short-run supply curve is at the break-even point.
C) When price exceeds marginal cost,a profit-maximizing firm will decrease production.
D) The marginal cost curve intersects the average total cost curve at the break-even point.
Marginal Cost
Marginal Cost is the increase in cost resulting from the production of one additional unit of a good.
Break-even Point
The production level where total revenues equals total expenses, and there is neither profit nor loss.
- Pinpoint the specific situations that lead a company in a perfectly competitive market to achieve break-even, optimize profits, and decide on halting operations.
- Illustrate the dynamics between price, marginal cost, marginal revenue, and average total cost, and their effect on organizational strategies in perfect competition.
Verified Answer
MN
Learning Objectives
- Pinpoint the specific situations that lead a company in a perfectly competitive market to achieve break-even, optimize profits, and decide on halting operations.
- Illustrate the dynamics between price, marginal cost, marginal revenue, and average total cost, and their effect on organizational strategies in perfect competition.