Exhibit 24-6 -Refer to Exhibit 24-6. In the exhibit, A)the demand curve and the marginal revenue curve are the same. B)the MC curve must have a downward-sloping portion and an upward-sloping portion. C)the MC curve cuts the ATC curve at point B. D)if the firm produced Q₂, it would be taking a loss. E)c and d

Question

Quizplus · Accepted Answer

C) is correct because in perfect competition, the MC curve intersects the ATC curve at its lowest point, which is point B in the exhibit. D) is also correct because if the firm produced at Q₂, the price (P) would be below the ATC, indicating a loss per unit produced.

Exhibit 24-6 -Refer to Exhibit 24-6. in the Exhibit