Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. For an output level greater than Q = 100, the average total cost curve is upward-sloping because:
A. decreasing average fixed cost outweighs increasing average variable cost.
B. diminishing returns are not severe enough to outweigh decreasing average fixed cost.
C. increasing average variable cost outweighs decreasing average fixed cost.
D. marginal cost is increasing.
Answer: C
You might also like to view...
In 2007, the National Collegiate Athletic Association put a moratorium on new Football Bowl Series (formerly Division IA) teams. This policy will
A) protect the producer surplus of existing football programs. B) ensure that when entry occurs, producer surplus will not be zero. C) ensure that when entry occurs, producer surplus will be positive. D) ensure that consumer surplus is greater in the future.
A technological improvement that lowers production costs for Good A will shift: a. the supply curve for A to the left
b. the demand curve for A to the left. c. the demand curve for A to the right. d. the supply curve for A to the right.
Foreign direct investment generally leads to technological advancements in poorer countries.
Answer the following statement true (T) or false (F)
The more blood sugar in the brain, the more thoughtful the decision-making process.
Answer the following statement true (T) or false (F)