The zero-profit point for a perfectly competitive firm occurs where the price equals the minimum point of the:
A)AVC curve.
B)AC curve.
C)MC curve.
D)AFC curve.
E)none of the above.

Question

Quizplus · Accepted Answer

The zero-profit point for a perfectly competitive firm occurs where the price equals the minimum point of the Average Cost (AC) curve, indicating that the firm is covering all its costs, including a normal profit, but is not making any economic profit.

The Zero-Profit Point for a Perfectly Competitive Firm Occurs Where