Which curve intersects the AVC curve at its minimum point?
A) the MC curve
B) the ATC curve
C) the AFC curve
D) the MP curve
A
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The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.
Firms that can choose what price they will charge for their product and can increase the number of units sold by reducing price are called
a. price searchers. b. price leaders. c. purely competitive. d. price takers.
If the price elasticity of demand for a good is 0.5, then a 5 percent increase in price results in a
a. 0.1 percent decrease in the quantity demanded. b. 1 percent decrease in the quantity demanded. c. 2.5 percent decrease in the quantity demanded. d. 10 percent decrease in the quantity demanded.
It is because firms consciously try to balance social costs and benefits that efficiency conditions of perfect competition come about.
Answer the following statement true (T) or false (F)