If price equals average total cost, then total revenue
A) equals total cost
B) equals total fixed cost
C) equals total variable cost
D) is greater than total cost
E) equals marginal revenue

Question

Quizplus · Accepted Answer

When price equals average total cost, the total revenue generated from selling the goods or services is exactly equal to the total cost of producing them, meaning the firm breaks even.

If Price Equals Average Total Cost, Then Total Revenue