Average cost
A. increases and eventually begins to decrease.
B. is equal to marginal cost at its minimum.
C. is always greater than marginal cost.
D. is total cost/price of the product.
Answer: B
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Compared to a direct cash transfer payment of an identical amount, food stamps make individuals who desire less food than the value of the food stamps _____
a. better off b. worse off c. indifferent between food and all other goods d. prefer food too all other goods on the margin
The opportunity cost of purchasing an item is
a. the number of hours needed to earn money to buy it. b. the next best thing you could have done with the time and money spent. c. always less than the dollar value of the item. d. always equal to the dollar value of the item. e. just the time required to buy it.
Why do most economists favor emissions taxes over direct controls as a pollution deterrent?
What will be an ideal response?