for a firm in perfect competition, at the minimum of the average total cost curv

Question

for a firm in perfect competition, at the minimum of the average total cost curve a) losses are minimized. b) MC=ATC. c) is called the shut down point. d) profits are maximized. e) MR=MC for a firm in perfect competition, at the minimum of the average total cost curve a) losses are minimized. b) MC=ATC. c) is called the shut down point. d) profits are maximized. e) MR=MC for a firm in perfect competition, at the minimum of the average total cost curve a) losses are minimized. b) MC=ATC. c) is called the shut down point. d) profits are maximized. e) MR=MC

Explanation / Answer

For a perfectly competitive firm, MC curve intersects ATC curve at the lowest point of ATC.

So option (b) is correct.

Rest options are incorrect. Shutdown point is where P = minimum of AVC, and profit-maximization point is when price = MC.

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