Which of the following is TRUE?
A. If MC is above ATC, ATC must be increasing.
B. The MC curve intersects AFC at its minimum point.
C. If MC is below AVC, AVC must be increasing.
D. none of these
Answer: A
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The employees of Ajax cookies are on strike. Jane has decided not to shop at any store that is still selling Ajax cookies. This is known as
A) a closed shop. B) a union shop. C) a sympathy strike. D) a secondary boycott.
The demand curve for a monopolist is
A) the industry demand curve. B) the same as the demand curve for a perfectly competitive firm. C) a perfectly inelastic demand curve. D) a unitary elastic demand curve.
In the supply curve, the relationship between price and quantity supplied is
a. inverse. b direct. c. nonexistent. d. not determined.
Refer to the graph shown. If the supply curve shifts from S1 to S2, the value of the dollar will:
A. decrease in response to excess supply equal to Q3 - Q1. B. increase in response to excess demand equal to Q4 - Q2. C. decrease in response to excess supply equal to Q4 - Q2. D. increase in response to excess demand equal to Q3 - Q1.