Other things being equal, if a firm's marginal cost curve shifts upward at all output levels:
A. the average total cost curve remains unchanged at all output levels.
B. the average variable cost curve remains unchanged at all output levels.
C. the average fixed cost curve remains unchanged at all output levels.
D. All of these
Answer: C
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Expenditures on advertising ________
A) can lower average total cost if the advertising increases the quantity sold by a large enough amount B) cannot lower average total cost because when a firm advertises it increases its costs C) always lower average total cost because whenever a firm advertises, it increases the quantity sold D) are variable costs so do not affect the average total cost
In 2015, Ford Motor Company's sales were rising. These events were caused by
A) improving quality of service. B) an economic recession. C) an increase in advertising. D) an economic expansion.
A pure monopoly sells 6 units of a product per day at a unit price of $15. If it lowers the price to $14, its total revenue increases by $22. This implies that its sold output increases by ________.
A. 4 units per day B. 3 units per day C. 2 units per day D. 1 unit per day
Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. Suppose the economy is currently at Point B. If investors are optimistic about future growth in aggregate output, investment
A. moves to Point A. B. moves to Point C. C. moves to Point D. D. stays at Point B.