When firms in an industry are all producing at the minimum of average total costs,
A)consumers pay the highest possible price.
B)firms begin to leave the industry.
C)per unit costs are at their lowest.
D)there is no consumer surplus.
E)price is greater than marginal cost.

Question

Quizplus · Accepted Answer

When firms in an industry are all producing at the minimum of average total costs, per unit costs are at their lowest. It does not necessarily mean that consumers are paying the highest possible price or that there is no consumer surplus. It also does not necessarily lead to firms leaving the industry or price being greater than marginal cost.

When Firms in an Industry Are All Producing at the Minimum