Figure 10-1

-A firm earns a profit of exactly zero at its optimal output level only if

Name: Figure 10-1 -A firm earns a profit of exactly zero at its optimal output level only if
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Question

Figure 10-1
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-A firm earns a profit of exactly zero at its optimal output level only if

Quizplus · Accepted Answer

A firm earns a profit of exactly zero at its optimal output level when price (P) equals average cost (AC), indicating that the firm is covering all its costs, including both variable and fixed costs, but not making any economic profit.

Figure 10-1 ​

Figure 10-1