What is the relationship between total variable cost and marginal cost? Explain
What will be an ideal response?
Marginal cost is the slope of the total variable cost curve. This is true because the slope of the total variable cost curve is the change in total variable cost divided by the change in output. By definition, this is equal to marginal cost.
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Which of the following must exist for a firm to engage in price discrimination?
A) The firm must be able to identify and separate its buyers into different classes, and the low-price buyers cannot resell the product to the high-price buyers. B) The firm must face an inelastic demand. C) The firm must be able to realize economies of scale. D) The firm must have no more than one class of buyer. E) The firm must be a natural monopoly.
What is the relationship between the value of marginal product of labor and the marginal product of labor?
What will be an ideal response?
Aggregate demand represents the _____ at alternative price levels
a. total spending in the economy b. total saving in the economy c. total money demand in the economy d. total output of the economy e. total money supply in the economy
If British real GDP rose relative to U.S. real GDP, there would be
a. a rightward movement along the supply of British pounds curve in the dollar-pound market b. a leftward movement along the supply of British pounds curve in the dollar-pound market c. a rightward shift of the supply of British pounds curve in the dollar-pound market d. a leftward shift of the supply of British pounds curve in the dollar-pound market e. the tendency for the supply of British pounds curve to become flatter in the dollar-pound market