Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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Which of the following is not true according to Figure 1?
Figure 1: Cost and Price AC : Average Cost, AVC:Average Variable Cost , and MC: Marginal CostA) The firm earn a zero economic profit when it produces 40 unit at the price of $5.7 per unit.
B) The minimum acceptable price (the shut-down point) is $4.3 per unit.
C) The firm's supply curve is its MC curve above minimum of AVC.
D) The firm earns an economic profit when the price exceeds $4.3 per unit.
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