Which of the following is true at the quantity of output where average total cost has reached its minimum level?
举一反三
- A competitive firm maximizes profit by choosing the quantity at which ( ) A: average total cost is at its minimum. B: marginal cost equals the price. C: average total cost equals the price. D: marginal cost equals average total cost.
- If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be true at that level of output?
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.
- For any given price, a firm in a competitive market will maximize<br/>profit by selecting the level of output at which price intersects the<br/>( ) A: average total cost curve. B: average variable cost curve. C: marginal cost curve. D: marginal revenue curve.
- In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units. Firm A exhibits_________. A: constant returns to scale because average total cost is constant as output rises B: diseconomies of scale because total cost is rising as output rises C: economies of scale because average total cost is falling as output rises D: diseconomies of scale because average total cost is rising as output rises