Which Statement Is True

question 212

Multiple Choice

Which statement is true?

• A)A firm always operates at the minimum point of its average total cost curve.
• B)A firm always operates at the minimum point of its average variable cost curve.
• C)A firm never operates below the minimum point of its average total cost curve.
• D)A firm never operates below the minimum point of its average variable cost curve.

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Definitions:

Information Gaps

Situations where a disparity or lack of necessary information exists, making it difficult to make informed decisions or understandings.

Opportunity-driven

Pursuing actions based on perceived potential for growth or benefit.

Timmons Model

A model of entrepreneurship that emphasizes the dynamic balance between opportunity, resources, and team, as the three critical factors in successful venture creation.

Bootstrapping

A method of starting a company using personal finance or operating revenues with minimal outside investment, emphasizing cost-efficiency and lean operations.