Marginal cost is equal to average variable cost
A) when average variable cost is at its minimum value.
B) when marginal cost is at its minimum value.
C) when average variable cost is getting smaller.
D) when average variable cost is getting larger.
Answer: A
You might also like to view...
Suppose we live in an exchange economy with two goods. I own 50 of both goods, and you own 250 of both goods. My tastes are captured by the utility function 
and yours are captured by the utility function 
.
a. Calculate the competitive equilibrium price.
b. How much do each of us consume of good 1 in equilibrium?
c. Suppose the government transfers 100 units of your good 1 endowment to me. How is your answer to (a) and (b) affected? d. Suppose the government instead transfers 100 units of good 2 from you to me. How is your answer to (a) and (b) affected? e. Do you think your answers to (c) and (d) generally hold for most types of tastes -- or do you think they arise because of some specific feature of these tastes? What will be an ideal response?
Refer to Figure 12-1. If the firm is producing 500 units, what is the amount of its profit or loss?
A) profit equivalent to the area A B) loss equivalent to the area A C) profit of $280 D) There is insufficient information to answer the question.
In which of the following situations would a person be best off in real terms?
a. Receiving a 10 percent increase in a nominal wage, with an 8 percent rate of inflation in the economy b. Receiving a 3 percent increase in a nominal wage, with a 0 percent rate of inflation in the economy c. Receiving a 4 percent increase in a nominal wage, with a 5 percent rate of inflation in the economy d. Receiving no increase in a nominal wage, with a 5 percent rate of deflation in the economy e. Receiving a 2 percent decrease in a nominal wage, with a 6 percent rate of deflation in the economy
What are the different types of trade barriers? What are the arguments for trade barriers? What are the consequences of trade barriers?
What will be an ideal response?