Both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the average variable cost curve, the marginal cost must be:
A. greater than the average variable cost.
B. less than the average variable cost.
C. equal to the average variable cost.
D. at its minimum.
Answer: C
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A downturn in business confidence may cause a ________ in j, and an ________ of the true user cost of capital, both depressing investment
A) rise, overestimate B) rise, underestimate C) fall, overestimate D) fall, underestimate
World War II was the first event that provided the federal government with incentive to support labor unions and help them achieve some of their goals
Indicate whether the statement is true or false
The additional cost associated with the hiring of one more unit of labor is known as the
A) marginal physical product of labor. B) marginal revenue product of labor. C) marginal factor cost of labor. D) marginal utility of labor.
Firms maintain their completive edge by
a. Providing a good at lower costs than their rivals b. Providing a superior product at the same cost as your rival c. Being innovative d. All the above