If Price Is Below Average Total Cost but Above Average

question 42

Multiple Choice

If price is below average total cost but above average variable cost,the break-even level of output:

• A) is greater than the profit-maximizing level of output.
• B) is zero.
• C) can't be calculated since losses will be earned at each level of output including the profit-maximizing level.
• D) approaches infinity.
• E) equals the profit-maximizing level of output.