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:

Drinking-Related Problems

Issues arising from the consumption of alcohol, including health concerns, social problems, and psychological or physical dependency.

Adversely Affected

Negatively impacted or harmed by a particular event, action, or decision.

Behavioural Disinhibition

A personality trait describing an inability to inhibit behavioural impulses, rebelliousness, aggressiveness, and risk-taking that are associated with the development of alcohol problems.

Personality Characteristic

Traits or qualities that contribute to an individual's distinctive patterns of thinking, feeling, and behaving.