According to the mathematical laws that govern the relationship between average total cost and marginal cost, where must these two curves intersect?
The two curves will cross at the minimum point on the average total cost curve.
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Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. Which of the following gives the market supply curve?
A. Qs = 200,000 - 100P B. Qs = 0.5P - 500 C. Qs = 150P - 150,000 D. Qs = 150P - 30,000
In the United States, the individual income tax is best described as a
a. regressive tax b. proportional tax c. flat tax d. progressive tax e. repressive tax
An economics professor points to a student in the front row and announces that "sitting in class is the thing you value most during this time period." Is the professor correct? Why or why not?
Which of the following is an example of a variable cost to a typical firm?
a. labor b. mortgage payment on facility c. salary of the office assistant d. monthly mortgage premiums