The following data confront a business:

$\begin{array}{cc}
\text { Output }&\text { Marginal Revenue } &\text { Marginal Cost } \
0&16 & 10 \
2&16 & 9 \
3&16 & 13 \
4&16 & 15 \
5&16 & 21\6
\end{array}$
-A perfectly competitive business reaches a breakeven point where:
A)marginal cost intersects the average variable cost curve
B)total revenue equals variable cost
C)normal profits are zero
D)price equals minimum average cost
E)marginal cost is at a minimum

Question

The following data confront a business:

$\begin{array}{cc}
\text { Output }&\text { Marginal Revenue } &\text { Marginal Cost } \
0&16 & 10 \
2&16 & 9 \
3&16 & 13 \
4&16 & 15 \
5&16 & 21\6
\end{array}$
-A perfectly competitive business reaches a breakeven point where:
A)marginal cost intersects the average variable cost curve
B)total revenue equals variable cost
C)normal profits are zero
D)price equals minimum average cost
E)marginal cost is at a minimum

Quizplus · Accepted Answer

In perfect competition, breakeven occurs where price equals minimum average cost, ensuring total revenue covers all costs, including normal profit.

The Following Data Confront a Business -A Perfectly Competitive Business Reaches a Breakeven Point Where: A)marginal

The Following Data Confront a Business -A Perfectly Competitive Business Reaches a Breakeven Point Where:
A)marginal