Suppose for Some Firm That Average Total Cost Is Minimized

question 215

Multiple Choice

Suppose for some firm that average total cost is minimized at Q₁ units of output. For a monopolistically competitive firm in long-run equilibrium, Q₁

• A)is also the level of output at which marginal cost equals average total cost.
• B)exceeds the level of output at which there is a point of tangency between the demand curve and the average total cost curve.
• C)exceeds the level of output at which marginal revenue equals marginal cost.
• D)All of the above are correct.

---

Definitions:

Very Strong Association

A term used in statistics to describe a relationship between two variables that shows a high level of correlation or dependency.

Linear Association

A relationship between two variables that can be graphically represented with a straight line, indicating that changes in one variable correlate to changes in the other.

Negative Association

A connection between two variables where as one variable rises, the other falls.

Moderately Strong Association

A term in statistics indicating a fairly significant relationship between two variables, though not perfectly predictive.