If the marginal cost curve is below the average variable cost curve, then
A) average variable costs are increasing.
B) average variable costs are decreasing.
C) marginal cost must be decreasing.
D) average variable costs could either be increasing or decreasing.
B) average variable costs are decreasing.
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for coffee. What happens in this market if buyers expect the price of coffee to rise?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Harry needs to hire a lawyer but does not know how to find a good one. The lawyer is a(n)
A) experience good. B) credence good. C) logo good. D) search good.
A perfectly competitive firm has a horizontal supply curve in the short run
a. True b. False
A shift from LRAS2 to LRAS1 represents ______.
a. an increase in the price level
b. a decrease in the price level
c. an increase in real GDPNR
d. a decrease in real GDPNR