Multiple Choice
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 competitive firm is said to break-even if at equilibrium the:
A) price is equal to marginal revenue.
B) price is equal to average revenue.
C) price is equal to average variable cost.
D) price is equal to the average total cost.
E) price is equal to marginal cost.
Correct Answer:

Verified
Correct Answer:
Verified
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