The Short-Run Break-Even Price Is the Point at Which

question 120

Multiple Choice

The short-run break-even price is the point at which

• A) price is less than marginal cost.
• B) marginal cost, average total cost and marginal revenue are all equal.
• C) average variable cost is at a minimum.
• D) marginal cost, price and average variable cost are all equal.

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Definitions:

Stop Payment

An order issued to a bank by an account holder not to pay a specific check that has been written and issued but not yet cashed.

Secondhand Car

A vehicle that has had one or more previous owners before the current possession.

Acceptor

A drawee of a draft who has promised to honor the draft as presented by signing it on its face.

Draft

A written order by which the party creating it orders another party to pay money to a third party. Also called bill of exchange.