A Perfectly Competitive Firm's Short-Run Break-Even Output Occurs

question 178

Multiple Choice

A perfectly competitive firm's short-run break-even output occurs

• A) at the minimum point of its average variable cost curve.
• B) at the minimum point of its average total cost curve.
• C) at the minimum point of its marginal cost curve.
• D) at the intersection of its total cost curve and its marginal revenue curve.

---

Definitions:

Midpoint Method

A technique for calculating the percent change in which changes in a variable are compared with the average, or midpoint, of the starting and final values.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of consumers to price changes.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Price Elasticity

Refers to a measure of how much the quantity demanded of a product changes in response to a change in its price.