If the marginal cost is increasing over a given output range, the average total cost must increase.
Answer the following statement true (T) or false (F)
False
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If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Explain how the following factors will shift the demand curve for Gillette shaving cream
a. The price of a competitor's shaving cream increases. b. With an increase in unemployment, the average level of income in the economy falls. c. Shaving gels and foams, marketed as being better than shaving creams, are introduced in the market.
The "lemons problem" exists in the market for goods because
A) sellers tend to try to take advantage of buyers. B) buyers tend to try to take advantage of sellers. C) differences in the quality of the goods being exchanged. D) of moral hazard.
Under the non-strategic view of bargaining, the terms of agreement are determined by
a. Each parties outside options b. Your gain from agreement c. Your opponents gain from agreement d. All of the above