{"id":44426,"date":"2024-04-15T21:43:34","date_gmt":"2024-04-15T21:43:34","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44426"},"modified":"2024-04-15T21:43:34","modified_gmt":"2024-04-15T21:43:34","slug":"if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/","title":{"rendered":"If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is"},"content":{"rendered":"

[amp_mcq option1=”In long-run equilibrium” option2=”In short-run equilibrium” option3=”Minimizing short-run average total cost” option4=”Breaking even” correct=”option2″]<\/p>\n

The correct answer is: B. In short-run equilibrium<\/strong><\/p>\n

A firm is in short-run equilibrium when it is producing at the level of output where marginal cost is equal to marginal revenue. In this case, the firm is maximizing its profits in the short run.<\/p>\n

However, the firm is not in long-run equilibrium because marginal revenue is below average variable cost. This means that the firm is losing money in the long run. In the long run, the firm will either have to reduce its costs or exit the market.<\/p>\n

Option A is incorrect because the firm is not in long-run equilibrium.<\/p>\n

Option C is incorrect because the firm is not minimizing its short-run average total cost.<\/p>\n

Option D is incorrect because the firm is not breaking even.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”In long-run equilibrium” option2=”In short-run equilibrium” option3=”Minimizing short-run average total cost” option4=”Breaking even” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-44426","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\nIf an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=”In long-run equilibrium” option2=”In short-run equilibrium” option3=”Minimizing short-run average total cost” option4=”Breaking even” correct=”option2″]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:43:34+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/","og_locale":"en_US","og_type":"article","og_title":"If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is","og_description":"[amp_mcq option1=”In long-run equilibrium” option2=”In short-run equilibrium” option3=”Minimizing short-run average total cost” option4=”Breaking even” correct=”option2″]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:43:34+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/","url":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/","name":"If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T21:43:34+00:00","dateModified":"2024-04-15T21:43:34+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/if-an-imperfectly-competitive-firm-is-producing-a-level-of-output-where-marginal-cost-is-equal-to-marginal-revenue-marginal-revenue-is-below-average-variable-cost-and-the-price-is-equal-to-the-avera\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/44426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=44426"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/44426\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=44426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=44426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=44426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}