The Figure Given Below Shows the Revenue and Cost Curves

question 65

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-For a perfectly competitive firm, in the short run, which of the following statements is true?

• A)A price above minimum average variable cost, but below average total cost will produce an economic profit.
• B)A price below minimum average variable cost will cause the firm to shut down.
• C)Marginal cost is parallel to the axis showing quantity of output.
• D)Price is always greater than marginal revenue.
• E)Every firm contributes a significant amount to the total market output.

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Definitions:

Congruence

In psychology, refers to the alignment or agreement between an individual's self-concept and reality.

Intended Message

The specific information or feeling that a communicator aims to convey to the listener or reader.

Management Training

Programs or courses designed to improve the skills, knowledge, and competencies of individuals in managerial roles.

Subordinates

Employees or team members who are lower in rank or position and report to a superior in a hierarchical organization.