A fiRm Is Productively Efficient in the Long Run If

question 93

Multiple Choice

A firm is productively efficient in the long run if _____.

• A) its marginal cost equals marginal revenue
• B) its minimum average variable cost and minimum average total cost curves coincide
• C) its minimum average fixed cost and minimum average total cost curves coincide
• D) it produces output at the level where average total cost is minimum

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Definitions:

Financial Statements

Consolidated documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Errors

In accounting, errors refer to mistakes made in recording, classifying, or summarizing financial transactions and statements.

Credit Sales

Sales transactions where the payment is deferred to a future date, typically allowing the buyer to purchase goods or services on credit.

Vice-president

An officer in a company or institution below the president in rank, who can act in place of the president under certain conditions.