When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC is
A) $5.
B) between $45 and $50.
C) greater than $50.
D) Cannot be determined from the above information
C
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Managers undertake an investment only if
a. Marginal revenue is greater than zero b. Marginal costs is less than marginal revenue c. Marginal revenue is greater than marginal costs d. Investment decisions do not depend on marginal analysis
Which of the following is an example of a contractionary monetary policy?
a. Reduction in the amount of transfer payments made to poor families b. Purchase of U.S. government securities in the open market c. Increase in the discount rate d. Decrease in the required reserve ratio e. Increase in the tax rate
If the opportunity cost of production rises as more of a good is produced,
a. the terms of trade will be independent of opportunity costs b. the production possibilities curve will be a straight line c. a country will specialize in producing only those goods in which it has a comparative advantage d. a country should produce any good in which it has an absolute advantage e. a country may not specialize completely in the goods in which it has comparative advantage
Efficiency in output requires which of the following?
a. MC = MRP. b. MC = MFC. c. MC = MU. d. MC = AVC.