If the average total costs is falling,
a. the marginal cost curve must be above the average total cost curve.
b. the marginal cost curve must be below the average total cost curve.
c. the MC curve is rising.
d. the MC curve is horizontal (neither rising nor falling).
b. the marginal cost curve must be below the average total cost curve.
You might also like to view...
Which of the following is true? a. Sellers are willing to supply more of a good or service at every price after costs have increased. b. A fall in the price of a product leads to an increase in the profits earned by sellers
c. A fall in the cost of production leads to a downward movement along the supply curve of a product. d. Sellers are willing to supply more of a good or service at every price after costs have decreased. e. An increase in the price of a product leads to a fall in the profits earned by sellers.
Future generations will be hurt by a high national debt if incurring the debt
A. was done to pay Social Security recipients. B. resulted in heavy commitments to bail out business firms. C. increased formation of capital. D. slowed the formation of capital.
Government purchases in national income accounts would include expenditures for payments of:
A. public assistance for military veterans. B. salaries for current U.S. military officers. C. Social Security checks to retirees. D. public assistance for welfare recipients.
Which area represents the net gain to society? Should the reduction in output from QC to QE take place? Why or why not?
Use the following graph of the refined petroleum market to answer the questions below.
