What is always true at the quantity at which average total cost equals average revenue?
a. economic profit is zero
b. marginal cost equals marginal revenue
c. economic profit is maximized
d. revenue is maximized
e. cost is minimized
A
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The graph shows a
A) positive relationship that becomes steeper. B) negative relationship that becomes steeper. C) positive relationship that becomes less stee
Which element of total planned expenditure is NOT included in "autonomous planned spending"?
A) cY B) -cT C) NX D) Ip E) a
Suppose the annual rate of inflation has been 3 percent and the annual growth rate of the money supply has been 5 percent during the last few years. In the last twelve months, however, the monetary authorities have increased the money supply at a 12 percent annual rate. The expected inflation rate for the next period will be:
a. lower than 3 percent under both the adaptive and rational expectations hypotheses. b. 3 percent under the adaptive expectations hypothesis. c. 3 percent under the rational expectations hypothesis. d. higher than 3 percent under both the adaptive and rational expectations hypotheses.
In comparing the changes in TC and TVC associated with an additional unit of output, we find that:
A. the change in TVC is equal to MC, while the change in TC is equal to TFC. B. the change in TC exceeds the change in TVC. C. the change in TVC exceeds the change in TC. D. both TC and TVC are equal to MC.