Which of the Following Statements Is Correct

question 234

Multiple Choice

Which of the following statements is correct?

• A) In order to maximize profits in the short run, a price taker should always produce at the output level where marginal cost is equal to price.
• B) In long-run equilibrium, a price taker will produce at an output level where average total cost is at its minimum.
• C) A price taker will remain open in the short run, even if it is earning an economic loss, so long as price is sufficient to cover average variable cost.
• D) All of the above are true.

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Definitions:

Exempt Activities

Actions or operations by certain organizations that are not subject to taxation due to their nature, usually charitable, educational, or religious.

Social Mission

The purpose or goal of an organization that focuses on creating social value and addressing societal needs rather than generating profits.

Meeting Current Needs

Ensuring the present requirements or demands of a situation, organization, or individual are adequately addressed or fulfilled.

Charity

An organization or activity aimed at providing help and raising money for those in need, often without expecting anything in return.