If, as production increases, marginal cost rises above average cost, then average cost must:
a. ?Be increasing
b. ?Be decreasing
c. ?Remain constant
d. ?None of the above
Answer: Be increasing
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Refer to Table 6-4. Which of the following statements is correct?
A) The publisher's analysis is correct only if the demand is elastic. B) The publisher's analysis is correct only if the demand is perfectly inelastic. C) The publisher's analysis is correct only if the demand is unit elastic. D) The publisher's analysis is correct only if the demand is perfectly elastic.
If retailers' marginal cost from providing product-specific services for a new smart television is $50, if retailers offer the product-specific services for the television, the market ________ will ________.
A) supply; parallel shift to the left by $50 B) supply; parallel shift to the right by $50 C) demand; not shift D) demand; parallel shift to the left by $50
It is easier for firms to form and maintain a cartel when:
a. there are cost differences among the industry's firms. b. there are more number of firms in the industry. c. there are greater barriers to entry. d. the goods supplied are varied.
Horizontal equity means that two people in identical economic situations should pay the same amount of taxes
Indicate whether the statement is true or false