Asked by
Jisell Garaboa
on Oct 12, 2024
Verified
At an output of 12,ATC is $12 and price is $9.At an output of 13,ATC is $12.40 and price is $9.MC = MR at an output of 12.6.At that output the firm will
A) take a loss.
B) break-even.
C) make a profit.
ATC (Average Total Cost)
The per unit cost of production, calculated by dividing the total cost by the quantity of output produced.
MC (Marginal Cost)
The additional expense associated with the production of one more unit of a product or service.
Take a Loss
To realize a financial loss on an investment or transaction, often as a result of selling assets for less than their purchase price.
- Discern the conditions facilitating a corporation to elevate its profit to the highest level, cut down on losses, or meet a breakeven analysis, in relation to the role played by average total cost (ATC), marginal cost (MC), and marginal revenue (MR).
- Scrutinize the ramifications of achieving a profit, suffering a loss, or reaching a break-even state for an organization in a perfectly competitive market scenario.
Verified Answer
BD
Learning Objectives
- Discern the conditions facilitating a corporation to elevate its profit to the highest level, cut down on losses, or meet a breakeven analysis, in relation to the role played by average total cost (ATC), marginal cost (MC), and marginal revenue (MR).
- Scrutinize the ramifications of achieving a profit, suffering a loss, or reaching a break-even state for an organization in a perfectly competitive market scenario.