Figure 8.4.2 -Refer to Figure 8.4.2 Above. When Average Variable Cost (AVC)

question 84

Multiple Choice

Figure 8.4.2
-Refer to Figure 8.4.2 above. When average variable cost (AVC) is minimum,

• A) profit is maximized.
• B) AVC = MC.
• C) AVC = ATC.
• D) the firm suffers a loss.

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Definitions:

Specialization

Division of productive activities so that no one is self-sufficient.

Self-Sufficient

The ability of an individual, household, or nation to meet all their needs without external assistance or trade.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Importing

The process of importing products or services from other countries for the purpose of selling them domestically.