Q277
When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.
A.
AC = AR
B.
MC = AC
AnswerC.
MC = MR
D.
AR = MR
Answer: Option B
Solution
Answer: Option B
Solution:
When MC = AC, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.