If marginal cost of an additional unit of output is greater than average cost, then average cost will rise
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Paul goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet, but buys one on sale for $125. Paul's consumer surplus from the purchase is
A) $325. B) $200. C) $125. D) $75.
In the spring of 2002, the United States imposed tariffs on imported steel to protect the jobs of American steel workers and protect the production of the American steel industry. Why might this policy not work to increase overall employment in the United States?
What will be an ideal response?
The velocity of circulation of money is typically greater than 1
A. under no circumstances. B. only if the unemployment rate is relatively low. C. because the same money is exchanged a number of times each year. D. because of inflation.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C