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Commerce · Q654

Economics

Graduate and Post Graduate · Commerce · question 654

Q654

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is

A.
In long-run equilibrium
B.
In short-run equilibrium
C.
Minimizing short-run average total cost
Answer
D.
Breaking even

Answer: Option C

Solution

Answer: Option C
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