When marginal cost is greater than average total cost,
A. average fixed cost must be increasing with output.
B. marginal cost must be increasing with output.
C. average total cost must be increasing with output.
D. average variable cost must be decreasing with output.
Answer: C
You might also like to view...
A monopolist faces an average total cost of $6 when it produces 200 units of its product. If it sells the 200 units at $8 per unit, ________
A) the monopolist incurs a loss of $200 B) the monopolist incurs a loss of $400 C) the monopolist makes a profit of $200 D) the monopolist makes a profit of $400
If the law of demand holds, then
A. the demand curve has a negative slope. B. the demand curve has a positive slope. C. the demand curve shifts whenever the price changes. D. the diminishing marginal utility is not valid.
Grooming well for a big date is a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
In the medium run of a few months or a few years, exchange rate markets are influenced by ________________ rates.
a. labor b. production c. growth d. inflation