Suppose for Some Firm That Average Total Cost Is Minimized

question 215

Multiple Choice

Suppose for some firm that average total cost is minimized at Q₁ units of output. For a monopolistically competitive firm in long-run equilibrium, Q₁

• A)is also the level of output at which marginal cost equals average total cost.
• B)exceeds the level of output at which there is a point of tangency between the demand curve and the average total cost curve.
• C)exceeds the level of output at which marginal revenue equals marginal cost.
• D)All of the above are correct.

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Definitions:

Residual Standard Deviation

A statistical measure of the amount of variance in investment returns not explained by the beta in the Capital Asset Pricing Model (CAPM).

Geometric Average Return

Is the average rate of return of a set of values calculated using the products of the terms.

Arithmetic Return

The simple average of periodic returns of an investment over a specified time frame.

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and magnitude of cash flows into and out of the investment.