{"id":49183,"date":"2024-04-15T22:52:04","date_gmt":"2024-04-15T22:52:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49183"},"modified":"2024-04-15T22:52:04","modified_gmt":"2024-04-15T22:52:04","slug":"when-____-we-know-that-the-firms-must-be-producing-at-the-minimum-point-of-the-average-cost-curve-and-so-there-will-be-productive-efficiency","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-____-we-know-that-the-firms-must-be-producing-at-the-minimum-point-of-the-average-cost-curve-and-so-there-will-be-productive-efficiency\/","title":{"rendered":"When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97d96d03a1b\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    AC = AR                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    MC = AC                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    MC = MR                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    AR = MR                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. MC = AC<\/strong><\/p>\n<p>When marginal cost equals average cost, the firm is producing at the minimum point of the average cost curve and so there will be productive efficiency.<\/p>\n<p>Marginal cost (MC) is the additional cost incurred by producing one more unit of output. Average cost (AC) is the total cost of production divided by the number of units produced.<\/p>\n<p>When MC equals AC, the firm is producing at the point where the additional cost of producing one more unit of output is equal to the average cost of producing all units of output. This is the point where the firm is producing at the lowest possible cost per unit of output.<\/p>\n<p>Productive efficiency is the condition in which a firm is producing the maximum output possible with the given level of inputs. This occurs when the firm is producing at the minimum point of the average cost curve.<\/p>\n<p>The other options are incorrect because they do not necessarily indicate that the firm is producing at the minimum point of the average cost curve.<\/p>\n<p>Option A: AC = AR. This condition indicates that the firm is earning a normal profit. It does not necessarily mean that the firm is producing at the minimum point of the average cost curve.<\/p>\n<p>Option C: MC = MR. This condition indicates that the firm is maximizing profits. It does not necessarily mean that the <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n   <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>          <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> firm is producing at the minimum point of the average cost curve.<\/p>\n<p>Option D: AR = MR. This condition indicates that the firm is in a perfectly competitive market. It does not necessarily mean that the firm is producing at the minimum point of the average cost curve.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/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":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When ____, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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