When AR = AC, firm is at:

Related MCQs

• Suppose a competitive firm produces 100 units of X for a price of Rs.10 a unit. The firm is employing labour and capital such that the marginal physical product of labour and capital is 20 and 5 and the prices paid to labour and capital are Rs. 60 and Rs. 40 respectively. How would you characterize the firm
• A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be:
• If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then the firm is a
• If a firm sells its output on a market that is characterized by a single seller and many buyers of a homogeneous product for which there are no close substitutes and barriers to long-run resource mobility, then the firm is
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• If a firm sells its output on a market that is characterized by few sellers and many buyers and limited long-run resource mobility, then the firm is
• 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 price is equal to average total cost, then the firm
• If the demand curve facing a firm is perfectly elastic, then:
• A profit-maximizing firm in the short run will expand output:
• Price is constant or "given" to the individual firm selling in a purely competitive market because: