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:

Column Chart

A type of chart used in data visualization that displays data as vertical bars, with the height of each bar representing the value of the data.

X-Y (Scatter)

A type of chart or graph that displays individual data points on a two-dimensional plane, often used to observe relationships between variables.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportions, where the arc length of each slice is proportional to the quantity it represents.

Whole

Entire or complete, without missing parts.