The marginal cost curve:
A. intersects the average cost curve from above at the efficient scale of production.
B. lies below the average cost curve.
C. intersects the average cost curve from below at the highest point on the average cost curve.
D. intersects the average cost curve from below at the efficient scale of production.
D. intersects the average cost curve from below at the efficient scale of production.
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The primary emphasis in U.S. national income accounts is on
a. gross national product. b. gross domestic product. c. net national product. d. personal disposable income.
If firms in a perfectly competitive industry are earning positive economic profits, then what will happen in the long run?
What will be an ideal response?
What happens to consumer surplus as price falls along a given demand curve?
a. It always increases. b. It always decreases. c. It never changes. d. It increases only if price increases just a little. e. It depends on the elasticity of demand and supply.
Diseconomies of scale occur when
a. average fixed costs are falling. b. average fixed costs are constant. c. long-run average total costs rise as output increases. d. long-run average total costs fall as output increases.