Both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the average variable cost curve, the marginal cost must be:
A. greater than the average variable cost.
B. less than the average variable cost.
C. equal to the average variable cost.
D. at its minimum.
Answer: C
You might also like to view...
The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
Brown can brew 4 gallons of stout or 3 gallons of lager every three months, or any linear combination in between. Which statement is true?
A) Brown sacrifices 3/4 gallons of lager for every gallon of stout brewed. B) Brown sacrifices 1 1/3 gallons of stout for every gallon of lager brewed. C) Both of the above are true. D) None of the above is true.
A nation benefits from international trade if it:
a. exports more than it imports. b. imports more than it exports. c. imports goods for which it is a low opportunity cost producer. d. exports goods for which it is a low opportunity cost producer.
Government bureaucrats want larger budgets
A. because salaries are sometimes tied to budget size. B. to fulfill an "empire building" tendency. C. because it may be necessary to ensure marginal benefits of output equal marginal costs. D. all of these answer options are correct.