Multiple Choice
If P exceeds AVC but is smaller than AC at the best level of output, the firm is
A) making a profit
B) incurring a loss but should continue to produce in the short run
C) incurring a loss and should stop producing immediately
D) breaking even.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A firm is able to sell any
Q2: The best, or optimum, level of output
Q4: When AC is more than AR, what
Q5: When AR passes through some point between
Q6: Demand curve of a firm is perfectly
Q7: Homogenous product means products are:<br>A)Similar<br>B)Close substitutes<br>C)Quite alike<br>D)None
Q8: Which of the following industries most closely
Q9: Breakeven point means:<br>A)AR = AC<br>B)TR = TC<br>C)No
Q10: There is inverse relation between price and
Q11: When AR = AC, firm is at:<br>A)Supernormal