With respect to the average cost curves, the marginal cost curve
a. intersects average total cost, average fixed cost, and average variable cost at their minimum points.
b. intersects average total cost, average fixed cost, and average variable cost at their maximum points.
c. intersects both average total cost and average variable cost at their minimum points.
d. intersects average total cost where it is increasing and average variable cost where it is decreasing.
e. intersects only average total cost at its minimum point.
C
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In economics, the demand for a good refers to the amount of the good that people
a. Will buy at alternative income levels b. Need to achieve a minimum standard of living. c. Will buy at various prices d. Would like to have if the good were free
A firm maximizes its profit by producing the amount of output such that
A) marginal revenue equals marginal cost. B) marginal revenue exceeds marginal cost by some amount. C) marginal revenue is maximized. D) marginal cost is minimized. E) marginal revenue exceeds marginal cost by the maximum amount possible.
The recession of the early 1990s was triggered by a decrease in aggregate supply
Indicate whether the statement is true or false
We use the midpoint formula in computing the price elasticity of demand coefficient in order to:
A. Make the coefficient value become independent of whether price goes up or down B. Convert absolute changes into percent-changes C. Eliminate the negative sign of the coefficient D. Make the coefficient become equal to the slope of the demand curve