The Figure Given Below Shows the Revenue and Cost Curves

question 38

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
-In the short-run, a competitive firm is said to break-even if at equilibrium the:

• A)price is equal to marginal revenue.
• B)price is equal to average revenue.
• C)price is equal to average variable cost.
• D)price is equal to the average total cost.
• E)price is equal to marginal cost.

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Definitions:

Buyer And Seller

Parties involved in the transaction of goods or services, where the buyer purchases from the seller.

Installment Payments

A system of paying for goods or services over a period of time in regular, scheduled payments.

New Business

A venture that has been recently established, entering its initial operational stage in the marketplace.

Valuation

The process of determining the present value of an asset or a company based on earnings, market value, or other methods.