Multiple Choice
The figure given below shows the demand and cost curves of a perfectly competitive firm.Figure: 10.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-In the short run, certain costs, such as rent on land and equipment, must be paid whether or not any output is produced. These are:
A) the firm's variable costs.
B) the firm's break-even costs.
C) the firm's sunk costs.
D) the firm's marginal costs.
E) the firm's fixed costs.
Correct Answer:

Verified
Correct Answer:
Verified
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