An Industry Is Producing at the Least-Cost Rate of Production

question 103

Multiple Choice

An industry is producing at the least-cost rate of production when

• A)marginal cost is greater than average total cost.
• B)marginal revenue is greater than price.
• C)price and the minimum average total cost are equal.
• D)price and marginal revenue are equal.

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Definitions:

Market Price

The present cost at which a service or asset is available for purchase or sale.

Par Value Common Stock

The nominal or face value assigned to common shares in the charter of a corporation, which has little relation to the market value.

Paid-in Capital

The amount of money shareholders have invested in a company in exchange for equity, excluding any earnings retained by the company.

Market Value

The ongoing rate at which a commodity or service is offered for buying or selling in the market.