Refer to the following graph.
This set of cost curves is:
A. correct.
B. wrong because the average fixed cost curve is drawn incorrectly.
C. wrong because the average fixed cost curve is shown to be below the average variable cost.
D. wrong because the average total cost and the marginal cost curves are reversed.
Answer: B
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Which of the following correctly identifies an argument against free trade?
A) Free trade reduces world production. B) Free trade hampers technology transfers. C) Free trade increases the wages in importing countries. D) Free trade may result in job loss in some specific industries in the domestic economy.
Traditionally, elementary and secondary education was an enterprise of state government
a. True b. False
A monopolist maximizes profits by finding
A) the rate of output where marginal revenue equals marginal cost. B) the rate of output where price equals marginal cost. C) the price where price exceeds marginal revenue by that largest amount. D) the price where average revenue and marginal cost are equal.