When AR passes through some point between minimum AVC and AC, it is called:
A)Supernormal profit
B)Loss
C)Breakeven point
D)Minimising losses

Question

Quizplus · Accepted Answer

When Average Revenue (AR) passes through some point between minimum Average Variable Cost (AVC) and Average Cost (AC), it indicates the firm is operating at a level where it is not yet profitable but has minimized its losses by covering more than its variable costs yet not all of its total costs.

When AR Passes Through Some Point Between Minimum AVC and AC