Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Firms under Perfect Competition

Question:
The point of minimum average cost at which the supply curve cuts the Long range Average Cost Curve (LRAC) is the ________ of a firm.
Options:
Break-even point
Super normal point
Break out point
Super profits
Correct Answer:
Break-even point
Explanation:
The point of minimum average cost at which the supply curve cuts the LRAC Curve is the break-even point of a firm.