Discuss the relation between average variable cost (AVC) and marginal cost (MC) curves
The AVC and the MC curves depict an important relationship. At outputs less than the minimum of average variable cost (i.e., where the AVC curve is falling) marginal cost is less than average variable cost. Similarly, where the AVC curve is rising marginal cost is greater than average variable cost. Finally, if average variable cost is constant (as occurs near the minimum of AVC), it equals marginal cost. However, the reverse implications are not necessarily true—immediately to the left of the minimum of AVC, MC is below it but the marginal cost curve itself is rising.
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When the amount of sales is small, but each sale has a high value, cheating on a cartel arrangement can significantly increase an individual firm's profits
a. True b. False Indicate whether the statement is true or false
which of the following is the best definition of money?
What will be an ideal response?
Bob just graduated from college and has just landed his first job with a local accounting firm that will start in three months. Bob plans to use that time to find a place to live, and adjust to the new area. Bob would be considered:
A. frictionally unemployed. B. Bob is not in the labor force. C. employed. D. structurally unemployed.
When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A. lemon market hypothesis. B. rate-of-return hypothesis. C. capture hypothesis. D. share-the-gains, share-the-pains hypothesis.