56. At the current level of output for Nobuhiko Corporation, marginal cost is eq

Question

56. At the current level of output for Nobuhiko Corporation, marginal cost is equal to average total This means that a. average total cost is increasing. b. average total cost is decreasing. c. average total cost is at its minimum value. d. marginal cost is at its minimum value. e. (c) and (d). 57. For any firm for which price is greater than or equal to average variable cost (regardless of market structure), profits will be maximized when the firm chooses to produce and sell the quantity at which a. total revenue is maximized. b. marginal revenue is equal to marginal cost. c. price is equal to average total cost. d. price is equal to marginal cost. e. demand is inelastic. 58. Zilltorp Corporation is a perfect competitor. The market price for a unit of Zill firm's marginal cost is orp's output is $20. The $16, and its average total cost is $18. This suggests that the firm is suffering losses, but it should stay in business as long as average variable cost is a. less than or equal to the price. b. the firm is making positive profits. c. the firm could increase its profits by expanding output. d. the firm could increase its profits by reducing output. e. (b) and (c) KEEP GOING: REMEMBER TO ANSWER ALL 60 QUESTIONS.

Explanation / Answer

56. When average total cost is at its minimum it intersects with the marginal cost curve.

Hence, option c)

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