When a Firm's Demand Curve Is Tangent to Its Average

question 137

Multiple Choice

When a firm's demand curve is tangent to its average total cost curve:

• A) the firm must be operating in a monopolistically competitive market.
• B) economic profits are zero.
• C) the firm must be earning economic profits.
• D) the firm must be incurring economic losses.

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Definitions:

Equal Protection

A legal principle, under the Fourteenth Amendment, that requires states to treat all individuals within its jurisdiction with equal application of the law.

Superfund

A United States federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.

Toxic Waste Sites

Locations where hazardous waste is stored, treated, or disposed of, posing risks to human health and the environment.

Comprehensive Environmental Response

A legislative framework aimed at facilitating the cleanup of sites contaminated with hazardous substances, also known as the Superfund.