Why does the AVC reach its minimum before the ATC reaches its minimum?
What will be an ideal response?
The AVC is being pulled down by marginal costs that are below AVC. The ATC is being pulled down by the same factor plus the spreading out of the fixed costs over more output. The second factor keeps ATC falling after AVC begins to rise until ATC = MC.
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As interest rates fall, the
A) promised payments of bonds fall. B) face values of bonds fall. C) price of bonds rises. D) price of bonds falls.
Suppose the only characteristic of beer that a consumer cares about is alcohol content. Currently, Bud Light and Miller Lite both have the same alcohol content. a. Illustrate the consumer's indifference curves in a graph with ounces of Miller Lite on the horizontal and ounces of Bud Light on the vertical axis. b. Suppose that the producers of Bud Light lower the price of Bud Light. How will your answer to (a) change?
c. Suppose that the producers of Bud Light lower the alcohol content of their beer by 50%. How will your answer to (a) change? d. Since we identify tastes with indifference maps, would you say that the consumer's tastes have changed in (b) or (c)? e. How could we change the units we use to measure Miller Lite in order to get the indifference map in (c) to again look like the one in (a)? What will be an ideal response?
The F statistic is also referred to as the score statistic.
Answer the following statement true (T) or false (F)
What is included in MB that is not included in either M1 or M2?
A. currency B. reserve deposits C. savings accounts D. checking accounts