Choose the situation that matches the concept. The price at which the firm will

Question

Choose the situation that matches the concept.

The price at which the firm will make zero profits.

Select one or more:

a. The price associated with the minimum of marginal cost (MC).

b. The price associated with the intersection of marginal cost and average total cost (ATC).

c. The price associated with the minimum of average variable cost (AVC).

d. The price associated with the intersection of marginal cost and average variable cost (AVC).

e. The price associated with the minimum of average total cost (ATC).

Choose the situation that matches the concept. The price at which the firm will make zero profits. Select one or more: a. The price associated with the minimum of marginal cost (MC). b. The price associated with the intersection of marginal cost and average total cost (ATC). c. The price associated with the minimum of average variable cost (AVC). d. The price associated with the intersection of marginal cost and average variable cost (AVC) Oe. The price associated with the minimum of average total cost (ATC).

Explanation / Answer

b and e are correct

A firm earns 0 profit when P=MC=ATC or P= min ATC

Hence b and e are correct.

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