What is always true at the quantity where a firm's average total cost equals average revenue?
A)The firm's revenue is maximised.
B)The firm's profit is maximised.
C)The firm breaks even.
D)Marginal cost equals marginal revenue.

Question

Quizplus · Accepted Answer

At the quantity where a firm's average total cost equals average revenue, the firm is producing at the minimum point of its average total cost curve. This means that the firm is covering all its costs, including both variable and fixed costs, but it is not earning any profit. Therefore, the firm breaks even at this quantity.

What Is Always True at the Quantity Where a Firm's