A Firm Has Positive Fixed Cost and Positive Variable Cost

question 5

Multiple Choice

A firm has positive fixed cost and positive variable cost.At its current level of output, marginal cost equals average cost.The firm must

• A)not be producing at its profit-maximizing level of output.
• B)be producing the quantity that minimizes average cost.
• C)be operating at a point at which total variable cost equals total fixed cost.
• D)be earning negative profit.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight or flight response during perceived threats.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical indicator of cardiovascular health.

Heart Rate

The number of heartbeats per unit of time, usually expressed as beats per minute (bpm), an important measure of heart health and physical fitness.

Stimulus

Any event or situation that evokes a response from an organism or system.