Whenever a firm's marginal costs are less than its average costs, its average costs must be:
a. falling.
b. rising.
c. constant.
d. falling, then rising.
Ans: a. falling.
Economics
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a. discouraging entrepreneurial activity b. decreasing its population growth rate c. raising the standard of living d. improving and increasing its capital
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When a monopolist chooses the level of output where marginal cost equals marginal revenue the price:
A. equals average revenue. B. is lower than average revenue. C. equals marginal revenue. D. is lower than marginal revenue.
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Adverse selection and moral hazard are two different terms that mean essentially the same thing.
Answer the following statement true (T) or false (F)
Economics