If marginal cost is below average total cost, average total cost will

A. be decreasing.
B. be maximized.
C. be increasing.
D. remain constant.


Answer: A

Economics

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If a 50 cent increase in price causes the amount purchased to fall by 50 units per week, we know

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A continuing, long-term, large decline in the demand for coffee will not cause the price of coffee to fall much over the years if

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Refer to the scenario above. If they are the only bidders in the auction, Jeff will win the auction if ________

A) Tom and Roger bid up to their value for the good while Bill and Jeff bid below their value of the good B) Tom and Jeff bid up to their value for the good while Roger and Bill bid below their value for the good C) Bill and Jeff bid up to their value for the good while Tom and Roger stop bidding at $100 and $200, respectively D) each of them bids up to his value for the good

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