If a Firm Is Able to Cover Its Variable Costs

question 44

Multiple Choice

If a firm is able to cover its variable costs by operating in the short run then,at its best output level,the

• A)marginal revenue is equal to marginal cost
• B)vertical distance between MR and MC is maximized
• C)vertical distance between TR and TC is minimized
• D)marginal cost curve lies above the marginal revenue curve
• E)marginal cost curve is minimized

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Definitions:

Steroids

A class of lipids that have a basic structure consisting of four linked carbon rings, and include many hormones, alkaloids, and vitamins.

Terpenes

A large and diverse class of organic compounds, produced primarily by plants, that are the major components of essential oils.

Isoprene

A common organic compound with the formula C5H8, used as the monomer unit in the natural synthesis of rubber and other terpenes.

Anti-inflammatory

Substances or drugs that reduce inflammation or swelling in the body, commonly used to treat conditions like arthritis or allergies.