The Figure Given Below Shows the Revenue and Cost Curves

question 118

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 firm attempting to minimize losses:

• A)must leave the industry in order to maximize opportunity costs.
• B)will produce as long as marginal cost equals marginal revenue.
• C)will produce as long as total revenue exceeds total variable cost.
• D)will produce as long as total revenue exceeds total fixed cost.
• E)will produce as long as competitors continue to produce.

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Definitions:

Scarce Resources

Scarce resources are resources that are limited in availability and cannot satisfy all the wants and needs of an economy or population.

Allocate

To distribute resources or duties for a specific purpose according to a plan.

Irrational Behavior

Irrational behavior describes actions or decisions that are not in line with logical or rational thinking, often defying expected outcomes based on standard economic theories.

Diamond

A precious gemstone formed under high temperature and pressure conditions, often used in jewelry and industrial applications, not primarily an economic term unless discussing market dynamics.