When a Firm's Demand Curve Is Tangent to Its Average

question 543

Multiple Choice

When a firm's demand curve is tangent to its average total cost curve, the

• A)firm's economic profit is zero.
• B)firm must be earning economic profits.
• C)firm must be incurring economic losses.
• D)firm must be operating at its efficient scale.

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Definitions:

Social Entrepreneurs

Individuals who establish enterprises with the goal to solve social problems or effect social change, often using innovative and sustainable business models.

Nonprofit Organizations

Entities that operate for purposes other than generating profit, often focusing on charitable, educational, or social objectives.

FreeWill

The ability to make choices that are not determined by prior causes or by divine intervention.

Offering

A product, service, or idea presented to the market by a business, including attributes like price, quality, and features catering to the needs or desires of consumers.