When a firm increased its output by one unit, its AC decreased. This implies that
A) MC < AC.
B) MC = AC.
C) MC < AFC.
D) the law of diminishing returns has not yet taken effect.
A
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If production involves increasing opportunity cost, then on the production possibilities frontier, moving to a point closer to the horizontal axis will increase the opportunity cost of
A. the good that is shown on the horizontal axis. B. the good that is shown on the vertical axis. C. both of the goods shown on the axes. D. neither of the goods shown on the axes.
Empiricism is analysis that uses ________ to test theories
A) data B) illustrations C) value judgments D) philosophy
Other things remaining the same, the ________ the exchange rate for dollars, the greater the ________ in the foreign exchange market
A) higher; quantity of dollars supplied B) higher; quantity of dollars demanded C) lower; value of U.S. imports D) higher; expected profits from holding dollars
The demand curve that an individual competitive firm faces is known as its
A) excess demand curve. B) market demand curve. C) residual demand curve. D) leftover demand curve.