If marginal cost equals average variable cost, average variable cost will
A. increase.
B. decrease.
C. be minimized.
D. be maximized.
Answer: C
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The takeover process dissipates capital, making it an inefficient market mechanism.
Answer the following statement true (T) or false (F)
The exchange rate of currencies between countries affects the prices of the goods purchased and sold between them
Indicate whether the statement is true or false
In a short-run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls. B) short-run aggregate supply curve will shift leftward as the money wage rate rises. C) long-run aggregate supply curve will shift leftward as the money wage rate rises. D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
Imposing the same standards on high- and low-income countries can be a problem because
A) it widens the market and lowers prices. B) there are no economies of scale for low-income countries. C) high-income countries have few environmental problems. D) low-income countries may have less ability to enforce standards.