Describe the relationship between average variable cost and marginal cost
If marginal cost (MC) is greater than average variable cost (AVC), then AVC will increase. If MC is less than AVC, then AVC will decrease. If MC equals AVC, then AVC is unchanged. The minimum of AVC curve will intersect with the MC curve.
You might also like to view...
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In the figure above, what is the slope of the curve at point A?
A) 0.75 B) -0.75 C) 1.33 D) -1.33 E) zero
An autonomous appreciation of the U.S. dollar makes American goods ________ expensive relative to foreign goods which ________ net exports in the U.S
A) less; decreases B) less; increases C) more; decreases D) more; increases
Market interest rates are determined solely by people's willingness to loan funds, that is, their rate of time preference
Indicate whether the statement is true or false