A Pasta Producer Is in a Perfectly Competitive Market

question 123

Multiple Choice

A pasta producer is in a perfectly competitive market.To maximize profits,the pasta producer should produce the output level where

• A) price equals fixed cost.
• B) price equals average variable cost.
• C) price equals average total cost.
• D) price equals marginal cost.

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Definitions:

Insure Against Damage

The act of securing an insurance policy to protect against financial loss due to physical damage to property or goods.

Insurance

A contract by which the insurer promises to reimburse the insured or a beneficiary in the event that the insured is injured, dies, or sustains damage to property as a result of particular, stated contingencies.

Insurable Interest

A requirement in insurance policies that the policyholder must have a financial interest in the insured item or person that would cause financial loss if damaged or lost.

Appliance Corporation

A company that specializes in producing electrical or mechanical devices intended to perform certain tasks, typically domestic ones.