The ATC curve for a firm that produces an information product
A. slopes downward, because AVC is constant, AFC slopes downward, and ATC = AVC + AFC.
B. slopes upward, because AFC is constant, AVC slopes upward, and ATC = AFC + AVC.
C. slopes downward, because MC slopes downward, AVC is constant, and ATC = AVC +MC.
D. is U-shaped, because AVC is U-shaped, AFC slopes downward, and ATC = AVC + AFC.
Answer: A
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The reversal of fortune in terms of population density suggests that:
A) areas with a higher population density in 1500 are today relatively less prosperous. B) areas with a higher population density in 1900 are today relatively less prosperous. C) areas with a higher population density in 1900 are today relatively more prosperous. D) areas with a higher population density in 1500 are today relatively more prosperous.
Why is normal profit an opportunity cost?
What will be an ideal response?
If the Fed sells $5 billion of U.S. bonds in the open market and the reserve requirement is 5 percent, M1 will eventually
A. Increase by $100 billion. B. Decrease by $25 billion. C. Decrease by $100 billion. D. Increase by $25 billion.
High tariffs on intermediate inputs
A) increase the effective rate of protection on final goods. B) have no impact on the effective rate of protection on final goods. C) decrease the effective rate of protection on final goods. D) lower the nominal rate of protection on final goods. E) raise the nominal rate of protection on final goods.