Solved

The Figure Given Below Shows the Revenue and Cost Curves

Question 118

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5    MC: Marginal cost curve MR: Marginal revenue curve.ATC: Average-total-cost curve AVC: Average-variable-cost curve -In the short run, a firm attempting to minimize losses: A) must leave the industry in order to maximize opportunity costs. B) will produce as long as marginal cost equals marginal revenue. C) will produce as long as total revenue exceeds total variable cost. D) will produce as long as total revenue exceeds total fixed cost. E) will produce as long as competitors continue to produce. MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-In the short run, a firm attempting to minimize losses:


A) must leave the industry in order to maximize opportunity costs.
B) will produce as long as marginal cost equals marginal revenue.
C) will produce as long as total revenue exceeds total variable cost.
D) will produce as long as total revenue exceeds total fixed cost.
E) will produce as long as competitors continue to produce.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions