The Figure Given Below Shows the Revenue and Cost Curves

question 118

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-In the short run, a firm attempting to minimize losses:

• A)must leave the industry in order to maximize opportunity costs.
• B)will produce as long as marginal cost equals marginal revenue.
• C)will produce as long as total revenue exceeds total variable cost.
• D)will produce as long as total revenue exceeds total fixed cost.
• E)will produce as long as competitors continue to produce.

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