Refer to the following graph.
This set of cost curves is:
A. wrong because the marginal cost curve does not intersect the average total cost curve.
B. wrong because the average variable and average total cost curves are switched.
C. correct.
D. wrong because the marginal cost curve should go through the minimum points of the AVC and ATC curves.
Answer: D
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A firm operating with diminishing total returns cannot be profit maximizing
What will be an ideal response?
Which of the following statements regarding marginal analysis are? true? (Check all that apply.?)
A. It excludes information that is relevant to the? individual's decision. B. It is often faster to implement than optimization using total value. C. It focuses on the difference between one feasible alternative and the next feasible alternative. D.It always picks out a different optimum than the minimization of the total cost.
Economic rent is
A. the return to landlords. B. a payment for the use of any resource above its opportunity cost. C. a payment for land, an apartment, or a house that one does not own. D. the return to owners of farmland.
There would be no excess burden from a tax if demand were
A. perfectly inelastic. B. perfectly elastic. C. unitarily elastic. D. upward sloping.