For a short-run cost function which of the following statements is (are) not true?
a. The average fixed cost function is monotonically decreasing.
b. The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum.
c. The marginal cost function intersects the average variable cost function where the average variable cost function is a minimum.
d. The marginal cost function intersects the average total cost function where the average total cost function is a minimum.
e. b and c
b
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Evaluating risk requires that:
A. we think about different possible outcomes. B. we accept that our best guess about future costs and benefits could be wrong. C. we consider uncertain costs or benefits of an event or choice. D. All of these statements are true.
When a price ceiling which had been set below equilibrium price is removed, what happens next?
A. quantity supplied rises B. quantity demanded rises C. supply rises D. demand rises
An employer that only employs applicants who have college degrees is an example of
A. proofing. B. moral hazard. C. mandating that information be shared. D. screening.
A technological innovation that reduces a firm's cost of producing additional units of output will lead to:
A. an increase in the quantity supplied by the firm, but no change in the firm's supply. B. a decrease in the firm's supply. C. an increase in the firm's supply. D. a decrease in the quantity supplied by the firm, but no change in the firm's supply.