If the marginal product curve is intersecting the average product curve, we know that
A) the average variable cost curve is intersecting the average total cost curve.
B) the marginal cost curve is intersecting the average fixed cost curve.
C) the average total cost curve lies above the marginal cost curve.
D) the marginal cost curve is intersecting the average total cost curve.
Answer: D
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Which of the following is NOT likely to affect investment?
A) variations in expected output B) the nominal interest rate C) the real interest rate D) the tax treatment of depreciation allowances
A point outside a society's production possibilities curve is one that is
A) unattainable given the resources of the society. B) technologically inefficient. C) undesirable given the implied underemployment of resources. D) desirable since it satisfies the desires of the population.
In order for product differentiation to take place
A. there must be physical differences among the products. B. there cannot physical differences among the products. C. there may or may not be physical differences among the products.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.