In the Short Run a Competitive Firm Is Said to Break-Even

question 110

Multiple Choice

In the short run a competitive firm is said to break-even if,at the equilibrium:

• A)price is equal to marginal revenue.
• B)price is equal to average revenue.
• C)price is equal to average variable cost.
• D)price is equal to the average total cost.
• E)price is equal to marginal cost.

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Definitions:

Par Value

The stated value of a bond or stock by the issuing entity, which may not mirror its actual value in the market.

Periodic Interest Payments

Regular payments made to a lender by a borrower, covering the interest incurred on the borrowed funds.

Installment Note

A debt that requires regular payments, or installments, of principal and interest until it is paid off.

Present Value

The present value of a future amount of money or series of cash flows, discounted at a certain rate of return.