Use the Following Figure to Answer the Question : Figure

question 57

Multiple Choice

Use the following figure to answer the question : Figure 9-4 : shows the marginal cost curve,the average cost curve,the average variable cost curve,and the demand curve for a firm over different levels of output.The market price is $P.
-Refer to Figure 9-4.At a price of $P,the firm will produce the output level _____.

• A)OA where marginal cost just covers AVC
• B)OB where marginal cost equals the price
• C)OC where marginal cost equals ATC
• D)OD where the price just covers AVC

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Definitions:

Oral Contract

An agreement between parties that is spoken and not memorialized in writing, yet is fully legal and binding.

Received and Accepted

A term indicating that goods or services have been both delivered and acknowledged as meeting the terms of a contract or agreement.

Price Term

The specific conditions related to the price agreed upon in a contract for the sale of goods or services.

International Sale

The process of buying and selling goods or services across national borders, subject to international trade laws and agreements.