The Level of Output Produced by a Firm Is Efficient

question 75

Multiple Choice

The level of output produced by a firm is efficient if _____ at that level of output.

• A)marginal benefit equals marginal cost
• B)total cost equals total revenue
• C)fixed cost equals price
• D)average variable cost equals average revenue

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Definitions:

Redeemed

Refers to the repayment or buyback of securities, such as bonds or preferred stocks, before their maturity.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, entitling them to receive a specified amount of interest and repayment of the principal.

Stockholders

Owners of the stock of the corporation.