The Figure Above Shows Cost Curves for a Perfectly Competitive

question 69

Multiple Choice

The figure above shows cost curves for a perfectly competitive firm.A profit-maximizing firm will break even when market price is:

• A)$0.60
• B)$0.80
• C)$1.50
• D)$1.60

---

Definitions:

Markdown

A reduction from the original or previous selling price of goods or services.

Breakeven

The juncture where total expenses match total income, leading to neither a net profit nor a loss.

Mark-up

A financial addition to the product's cost to cater to company overheads and profit gain.

Wholesaler

An individual or entity that buys goods in large quantities from producers to resell them to retailers or directly to customers, but typically not to the final consumer.