Marginal cost is ________ average variable cost when ________.
A. equal to; average total cost is minimized
B. less than; total cost is maximized
C. equal to; average variable cost is minimized.
D. greater than; average fixed cost is minimized
Answer: C
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Which of the following is likely to cause a decrease in the natural rate of unemployment?
A) an increase in the percentage of the working-age population receiving disability insurance B) a decrease in the use of temporary workers C) a growing percentage of young workers in the labor force D) generous unemployment insurance benefits
Which of these is not a beneficial supply shock?
a. An abundant harvest that increases food supplies b. The discovery of natural resources c. Reductions in business taxes d. Technological advances e. Establishment of the Occupational Safety and Health Administration (OSHA)
Give two reasons why the long-run industry supply curve may slope upward. Use an example to demonstrate your reasons
In the economic way of thinking, traffic congestion is a sign of
A) a surplus of people. B) a surplus of automobiles. C) a shortage of buses. D) a negative externality.