<p>B is not correct.  Consistent with C (which <em>is</em> correct), we have <span class="math-container">$q=8$</span> when marginal cost and average cost are equal, but <span class="math-container">$MC(8)=2(8)+1=17\neq 8$</span>.</p>
<p>The question does not say there is only one incorrect statement.</p>

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2023-08-14T14:51:55.923Z
2023-08-14T14:51:55.923Z
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<p>I cannot seem to reason why option B is a correct statement. From what I understood when AC = MC we're at a competitive equilibrium or break-even point and after that the more we move to the right the respective curve behaviors indicate to us that we're in a profit zone. However, how do we find the price of 8 CHF? Do we say P=MC=MR ?<br />
Any help would be appreciated. <a href="https://i.sstatic.net/qwPlm.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/qwPlm.png" alt="enter image description here" /></a></p>

<cost><marginal><equilibrium>
Relationship between average cost and marginal cost
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# Relationship between average cost and marginal cost

(Asked by: username_0 on 2023-08-14)

I cannot seem to reason why option B is a correct statement. From what I understood when AC = MC we're at a competitive equilibrium or break-even point and after that the more we move to the right the respective curve behaviors indicate to us that we're in a profit zone. However, how do we find the price of 8 CHF? Do we say P=MC=MR ?  
Any help would be appreciated. [![enter image description here](https://i.sstatic.net/qwPlm.png)](https://i.sstatic.net/qwPlm.png)

**Tags:** cost, marginal, equilibrium


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## 1 answers

### Answer by username_1 on 2023-08-14. Score: 1

B is not correct. Consistent with C (which *is* correct), we have $q=8$ when marginal cost and average cost are equal, but $MC(8)=2(8)+1=17\neq 8$.

The question does not say there is only one incorrect statement.


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