When the average total cost is at its minimum, it is
A. greater than MC.
B. equal to MC.
C. smaller than MC.
B. equal to MC.
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Which of the following is TRUE about the labor force?
A) It includes those over 16 ages old and are employed. B) It includes those over 16 ages old and are unemployed. C) Both A and B are correct. D) None of the above is correct.
For a given level of reserves, a decrease in the reserve requirement ratio will
A) decrease legal reserves and decrease the money supply. B) increase legal reserves and decrease excess reserves C) decrease legal reserves and increase excess reserves. D) decrease excess reserves and decrease the money supply.
If the marginal product curve is intersecting the average product curve, we know that
A) the average variable cost curve is intersecting the average total cost curve. B) the marginal cost curve is intersecting the average fixed cost curve. C) the average total cost curve lies above the marginal cost curve. D) the marginal cost curve is intersecting the average total cost curve.
Suppose an oligopoly consists of two firms. Firm A lowers price and Firm B responds by lowering its price by the same amount. If average costs and industry output remain the same, which of the following will occur?
A) The profits of the two firms will increase. B) The profits of the two firms will decrease. C) The profits of the two firms will remain the same. D) Barriers to entry will come tumbling down and new firms will enter.