If the Price That Determined Where Marginal Revenue Equaled Marginal

question 126

Multiple Choice

If the price that determined where marginal revenue equaled marginal cost were below the bottom of the average variable cost curve,then the profit-maximizing,monopolistically competitive firm would

• A) produce an output amount where marginal cost equals marginal revenue and make a small profit.
• B) produce an output amount that corresponded to the place where marginal cost equals marginal revenue and break even.
• C) produce an output amount that corresponded to the place where marginal cost equals marginal revenue,but make a small loss.
• D) shut down because it would cost more to produce and sell output than it would to shut down and lose all fixed costs.
• E) produce an output amount that corresponded to the place where average total cost equals average variable cost and incur a small loss.

---

Definitions:

Venn Diagram

A graphical representation using circles to illustrate the relationships among various sets or groups by showing where they overlap and differ.

Particular Proposition

A categorical proposition that makes an assertion about at least one but not all members of the class designated by its subject term (I and O).

Venn Diagram

A visual representation of the mathematical or logical relationships between different groups, often depicted with circles that overlap.

Existential Import

An attribute of propositions that implies the existence of the subject matter within logical or philosophical analysis.