What is true only at the output level where price equals average total cost?
A)Marginal cost equals marginal revenue.
B)Profit is maximized.
C)Losses are minimized.
D)Profit is zero.
E)Cost is minimized.

Question

Quizplus · Accepted Answer

At the output level where price equals average total cost, profit is zero. This is because the total revenue earned from selling the goods is equal to the total cost of producing those goods, resulting in neither a profit nor a loss. Option A is not necessarily true as marginal cost could be higher or lower than marginal revenue at this output level, and options B and C are not true as profit or losses are not being maximized or minimized respectively. Option E is also not true as cost may not necessarily be minimized at this output level.

What Is True Only at the Output Level Where Price