For the short-run cost function AVC = a + bQ + cQ2,
A. the corresponding SMC function is SMC = aQ + 2bQ3 + 3cQ3.
B. the AVC curve is ?-shaped when a > 0, b < 0, and c > 0.
C. the AVC curve is ?-shaped when a < 0, b > 0, and c < 0.
D. both a and c
E. all of the above
Answer: B
You might also like to view...
What role does a company like J.D. Power (which provides product satisfaction reviews) serve?
A) It provides a screening test. B) It provides a signal of quality. C) It reduces moral hazard. D) It reduces costs of giving surveys.
Changes in inventory are included in the investment component of GDP
a. True b. False Indicate whether the statement is true or false
The government enforces property rights by
a. requiring property owners to pay property taxes. b. providing police and courts. c. forcing people to own property. d. providing public parks and recreation facilities.
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that
trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Sylvania will now be able to consume a maximum of a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.