If the Market Price Falls Below the Bottom of the Firm's

question 75

Multiple Choice

If the market price falls below the bottom of the firm's ATC curve:

• A) there is no level of output at which the firm can make a profit.
• B) the firm is earning profits.
• C) the market price must be lower than the firm's AVC.
• D) Total revenue must be higher than total cost.

---

Definitions:

Physically Impossible

An action, event, or process that cannot occur or be achieved within the realms of natural laws and physical constraints.

Infants

Very young children, typically under one year of age, who are in the earliest stages of development in terms of mobility, language, and cognitive skills.

Occlude

To stop, close up, or obstruct the passage of something.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a cognitive development concept in infants.