At an Output of 55,AVC Is $41 and MC Is

question 172

Multiple Choice

At an output of 55,AVC is $41 and MC is $38.At an output of 56,AVC is $42 and MC is $43.We may conclude that at the shutdown point AVC is

• A)greater than $43.
• B)less than $43.
• C)less than $42.
• D)less than $41.

---

Definitions:

Buyers

People or organizations that purchase products or services by paying with currency.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, reflecting profit margins.

Market Equilibrium

The condition in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers, resulting in a stable price.

Good

A tangible product that satisfies human wants or needs and can be transferred or traded.