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:

Specialized Structure

A distinctive feature or part of an organism or system, developed to perform a specific function or task.

Development

Process of regulated growth and differentiation of cells and tissues.

Morphogenesis

Emergence of shape in tissues, organs, or the entire embryo during development.

Body Shape

The physical form or structure of a person's body, often described in terms of proportion, distribution of muscle and fat, and skeletal structure.