Suppose the total cost of producing 50,000 telephones is $500,000 . Suppose also that at an output of 30,000 . the average total cost is $8 and the marginal cost is $6 . What is true about the minimum of the average total cost curve?
a. The minimum of the ATC is greater than $10.
b. The minimum of the ATC is less than $8.
c. The minimum of the ATC is between $8 and $10.
d. The minimum of the ATC can be no bigger than $6.
e. The minimum of the ATC corresponds to a quantity greater than 50,000.
B
You might also like to view...
If the value of price elasticity of demand for a good is equal to "?", it implies that the good has a ________ demand
A) perfectly elastic B) perfectly inelastic C) unit elastic D) relatively inelastic
A bank's "required reserves" are:
a. held as deposits with the Federal Reserve System. b. equal to its checkable deposits. c. equal to its transactions deposits. d. none of these.
Bondholders are not indifferent when a company sells more bonds
Indicate whether the statement is true or false
Command-and-control policies generally reduce pollution more than pollution taxes do.
Answer the following statement true (T) or false (F)