What is the relationship between average total cost and marginal cost?
What will be an ideal response?
When marginal cost is lower than average total cost, average total cost is falling. When marginal cost is greater than average total cost, average total cost is rising. When marginal cost is equal to average total cost, average total cost is at its minimum.
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Equilibrium in a market is
A. a situation in which there are no inherent forces that produce change. B. the natural state of affairs in the market. C. the actual price and quantity that will exist in a market. D. the best price and quantity that can exist in a market. E. All of these responses are correct.
Refer to the figure above. Domestic producers of this product in A would most prefer
A) a customs union with C. B) a customs union with B. C) a free trade agreement with both B and C. D) no agreement with either country.
A reduced risk premium __________ the discount factor in the stock price valuation formula, and __________ stock prices
A) raises; raises B) raises; lowers C) lowers; raises D) lowers; lowers
Economic growth
A. Refers to an increase in output. B. Causes the production possibilities curve to shift inward. C. Cannot be sustained over time. D. Means that capacity has decreased in the short run.