What is true for the perfectly competitive firm's output level at the break-even point? A) price = marginal revenue = average total cost B) marginal revenue = price marginal cost D) marginal revenue marginal revenue = marginal cost

Question

What is true for the perfectly competitive firm's output level at the break-even point? A) price = marginal revenue = average total cost B) marginal revenue = price < marginal cost C) marginal revenue = price> marginal cost D) marginal revenue < price = marginal cost E) price > marginal revenue = marginal cost

Quizplus · Accepted Answer

At the break-even point for a perfectly competitive firm, price equals marginal revenue and also equals average total cost, indicating the firm is covering all its costs, including opportunity costs, but not making economic profits.

What Is True for the Perfectly Competitive Firm's Output Level