The Figure Given Below Shows the Revenue and Cost Curves

question 124

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, the firm's break-even point is:

• A)the minimum point of the firm's demand curve.
• B)the minimum point of the firm's average-total-cost curve.
• C)the minimum point of the firm's average-variable-cost curve.
• D)the minimum point of the firm's marginal-cost curve.
• E)the minimum point on the average-fixed-cost curve.

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Definitions:

Group Profits

The combined earnings of a conglomerate or group of companies under a single parent corporation.

Price Conspiracy

An illegal agreement among competitors to fix prices, control market production, or divide markets to eliminate competition and harm consumers.

Monopoly Market

A market structure characterized by a single seller offering a unique product or service with no close substitutes.

Herfindahl-Hirschman Index

An indicator used to assess the degree of market concentration and establish the intensity of industry competition.