Average costs
a. fall at all levels of output
b. are falling when marginal costs are below average costs and rising when marginal costs are above average costs
c. are falling when marginal costs are above average costs and rising when marginal costs are below average costs
d. does not vary with output
b
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In the above figure, if the market produces the efficient amount of purses then producer surplus equals triangle
A) abc. B) bcd. C) adc. D) dce.
Refer to the above table. Suppose the price of the good sold is $3 and the marginal factor cost of labor is $300, how many units of labor will the firm hire?
A) 4 B) 5 C) 6 D) 3
If a country's population increases while the supply of farmland is fixed, then farmland prices will most likely
a. decrease because people spend more money on food and have less to spend on rent b. increase because the marginal revenue product of food decreases c. decrease because farmers must cultivate less productive foods such as potatoes d. increase because the marginal revenue product of land increases e. stay the same because there is no relation between farm land prices and population
If a consumer chooses a combination of goods that are inside of her budget line, than
A) the consumer is maximizing her satisfaction. B) the consumer is spending more than her current income. C) the consumer has a constant marginal rate of substitution for the two goods. D) the consumer is not maximizing her satisfaction.