If a Firm Is Making Zero Profits, Then Which of the Following

question 60

Multiple Choice

If a firm is making zero profits, then which of the following must be true?

• A)price equals average total cost
• B)price equals marginal cost
• C)the firm is operating at its efficient scale
• D)the firm is not marking up over marginal cost

---

Definitions:

Snake Phobia

An intense, irrational fear of snakes, which can cause emotional and physical reactions even in the absence of real danger.

Classical Conditioning

The act of learning through establishing a relationship between a stimulus that is environmentally based and another that occurs spontaneously in nature.

Environmental Cues

External triggers or signals that can influence behavior and perception without conscious awareness.

Abnormal Behaviour

Actions or behaviors that deviate significantly from what is generally understood to be usual or typical, often causing distress or impairment in functioning.