Average total cost:
A. increases when output levels are low, then decreases as output decreases.
B. is maximized when it equals marginal cost.
C. is minimized when it equals average variable cost.
D. decreases when output levels are low, then increases as output increases.
Answer: D
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During the 1990s the household savings rate in the United States as measured by NIPA
A) increased dramatically from two percent to almost six percent. B) fell sharply and was only 0.7% by the year 2004. C) increased only slightly because the federal budget deficit was finally eliminated. D) fell to two percent when a federal budget surplus appeared.
A firm's expansion path is
A) the firm's production function. B) a curve that makes the marginal product of the last unit of each input equal for each output. C) a curve that shows the least-cost combination of inputs needed to produce each level of output for given input prices. D) none of the above
The effect of _____ is to produce an unemployment rate that understates actual unemployment
a. the underground economy b. discouraged workers and underemployment c. the growth in real GDP d. institutionalized and retired labor force e. seasonally unemployed workers
Which of the following groups of words best represents macroeconomic goals?
A.) Full employment, price stability, economic growth. B.) Rate of production, choice of factors of production, and the pricing of specific goods. C.) Welfare of individual consumers and business firms. D.) Land, labor, and capital.