When a Firm Uses Average Total Cost Pricing

question 147

Multiple Choice

When a firm uses average total cost pricing,

• A)above-normal profits are made.
• B)economic profits equal zero.
• C)there is not enough money to pay investors in the firm their opportunity costs.
• D)price equals marginal cost.
• E)there is not enough money to pay the managers.

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Definitions:

Digestive Juice

Fluids produced by the digestive system that help break down food into absorbable nutrients.

Gallbladder

A small organ beneath the liver that stores bile, which is released into the intestine to help digest fat.

GERD

Gastroesophageal Reflux Disease, a condition where stomach acid frequently flows back into the esophagus.

Hiatal Hernia

A condition where part of the stomach pushes up through the diaphragm muscle into the chest cavity.