Whenever marginal cost is greater than average total cost,
a. average total cost is rising.
b. marginal cost is falling.
c. average total cost is falling.
d. Both b and c are correct.
a
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What is the relationship between marginal revenue and total revenue?
A. Total revenue equals marginal revenue multiplied by quantity sold B. Total revenue equals marginal revenue minus total costs C. Total revenue equals marginal revenue plus the price of all products sold D. Total revenue equals marginal revenue plus fixed costs plus variable costs
If the demand for a good does not change, how will an increase in the price of that good affect the consumer surplus from it?
What will be an ideal response?
Which of the following examples identifies the income effect of a price change?
A) When Gary's income doubles his wine consumption doubles, the price of wine remaining unchanged. B) When the price of diesel falls, consumers start purchasing more petroleum-powered vehicles. C) While purchasing shirts and jeans, when the price of a pair of jeans falls, Jack purchases more of both jeans and shirts. D) While purchasing pens and pencils, when the price of pens falls, Jill purchases more pens and fewer pencils.
The IT industry in Techland has a Herfindahl-Hirschman Index of 1,320. This implies that the IT industry in Techland is ________
A) not concentrated B) moderately concentrated C) highly concentrated D) dominated by a few large buyers