Refer to the short-run production and cost data. The curves of Figures A and B suggest that:
A. marginal product and marginal cost reach their maximum points at the same output.
B. marginal cost reaches a minimum where marginal product is at its maximum.
C. marginal cost and marginal product reach their minimum points at the same output.
D. AVC cuts MC at the latter's minimum point.
B. marginal cost reaches a minimum where marginal product is at its maximum.
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In the aggregate expenditure model, which of the following variables is assumed to be independent of real GDP?
A. consumption B. saving C. investment D. profit
The real wage rate equals
A) (money wage rate)/(price level). B) (price level)/(money wage rate). C) (money wage rate) × (price level). D) (money wage) + (number of hours worked)/(price level).
Under laissez faire, the force that drives the economy toward an efficient outcome is
a. central planning. b. majority voting. c. the pursuit of self-interest. d. altruism.
When full employment is present in the United States, which of the following is true?
What will be an ideal response?