A linear total cost curve which passes through the origin implies that
a. average cost is constant and marginal cost is variable.
b. average cost is variable and marginal cost is constant.
c. average and marginal costs are constant and equal.
d. need more information to answer question.
c
You might also like to view...
Economists usually use the term "recession" to refer to:
a. any slowdown in the growth of real GDP. b. zero real GDP growth. c. two or more consecutive quarters of declining real GDP. d. a reduction in nominal GDP lasting more than six months.
A profit-maximizing, price-taking firm should cease production whenever: a. the firm is making a loss
b. the firm is earning zero economic profit. c. the price is less than minimum average fixed cost. d. the price is less than minimum average variable cost.
A game in which pursuing dominant strategies results in noncooperation that leaves all parties worse off is a
A) prisoner's dilemma. B) cooperative equilibrium. C) first-price auction. D) zero-sum game.
Total variable costs ________ with decreasing output.
A. always decrease B. initially decrease and then increase C. initially increase and then decrease D. always increase