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:

Color Blindness

An ideology or approach that claims to ignore racial differences, aiming at treating all individuals equally without regard to race, ethnicity, or color, which critics argue may overlook systemic inequalities.

Racial Inequalities

Disparities and unjust treatment experienced by individuals or groups based on race, affecting various life aspects such as wealth, healthcare, education, and legal justice.

Functionalism

A perspective in sociology and anthropology that sees society as a complex system whose parts work together to promote stability and social order.

Prejudice

An unfavorable opinion or feeling formed beforehand or without knowledge, thought, or reason, often based on stereotypes.