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:

Burritos

A Mexican dish consisting of a wheat flour tortilla wrapped or folded around a filling, often including beans, rice, meat, and vegetables.

Bagels

Doughnut-shaped bread rolls that are boiled before being baked, often topped with seeds or filled with various ingredients.

Marginal Analysis

Analysis of the added value an activity provides compared to its additional expenses.

Economics Final

An examination or assessment concluding a course in economics, testing students' understanding of economic theories and principles.