Price Taking Producers Make Zero Economic Profit When Price Falls

question 30

Multiple Choice

Price taking producers make zero economic profit when price falls

• A)at the lowest point of the average cost curve
• B)at the point where marginal cost crosses average cost
• C)at the lowest point of the marginal cost curve
• D)both (a) and (b)
• E)both (a) and C
• F)both (b) and (c)
• G)All of the above
• H)None of the above

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Definitions:

Special Meeting

A meeting called for a specific purpose, outside of the regularly scheduled sessions.

Cumulative Voting

A system of voting for directors of a corporation in which shareholders can concentrate their votes on one candidate, rather than having to distribute them equally among candidates.

Majority Shareholder

An individual or entity that owns more than half of a company's outstanding shares, giving them controlling interest.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.