Price taking producers make zero economic profit when price falls
A)at the lowest point of the average cost curve
B)at the point where marginal cost crosses average cost
C)at the lowest point of the marginal cost curve
D)both (a) and (b)
E)both (a) and C
F)both (b) and (c)
G)All of the above
H)None of the above

Question

Quizplus · Accepted Answer

Price taking producers make zero economic profit when price equals the minimum point of the average cost curve, which is also where the marginal cost curve crosses the average cost curve from below.

Price Taking Producers Make Zero Economic Profit When Price Falls