The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points
Indicate whether the statement is true or false
FALSE
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Other things constant, the elimination of factor price distortions in developing countries would most likely
(a) decrease rural-urban migration. (b) have little effect on rural-urban migration. (c) increase rural-urban migration. (d) increase urbanization.
Assume a price floor is imposed in the wheat market at the equilibrium price and that a price ceiling is imposed in the gasoline market at the equilibrium price. An increase in supply in both the wheat and gasoline markets will create: a. surpluses in both the wheat and gasoline markets
b. shortages in both the wheat and gasoline markets. c. a surplus in the wheat market and an increase the quantity of gasoline traded. d. a surplus in the wheat market and a shortage in the gasoline market.
Most government franchises are granted to natural monopolies
a. True. b. False.
Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.