If marginal cost is less than average total cost,
A. average total cost is falling.
B. average total cost is constant.
C. average total cost is rising.
D. there is no way to determine if average total cost is falling, constant, or rising.
A. average total cost is falling.
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What will be an ideal response?
The industrial organization economics perspective locates the source of competitive advantage at the
a. Individual firm level b. Industry level c. Both a and b d. None of the above
Which of the following will not change the demand for office visits to the physician?
a. unusually cold and damp weather during the winter. b. a change in the price of an office visit. c. layoffs at the local plant causing a decrease in the number of people with health insurance in the community. d. television advertising by drug manufacturers to promote a new over-the-counter influenza treatment. e. they all change the demand for office visits.
Figure 11-3
In Figure 11-3, which of the following is true, whether or not the monopolist is maximizing profits?
A. MR < P. B. MC = P. C. MC < AC. D. MR = P.