In the short run, the marginal cost curve crosses the average total cost curve at:

A. the minimum point of the average total cost curve.
B. the maximum point of the average total cost curve.
C. a point just below the average fixed cost curve.
D. the point where the average total cost curve and average variable cost curve intersect.


Answer: A

Economics

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If somebody posing as a vacationer were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers,

A) group price discrimination on the part of airlines would no longer be profitable. B) group price discrimination on the part of airlines would no longer be profit maximizing. C) the airlines would respond by raising further the price charged to business flyers. D) this person would not earn any economic profit.

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The unemployment rate may:

A. understate the effect of a recession on employment because some leave the labor force. B. understate the effect of a recession on employment because many enter the labor force. C. overstate the effect of a recession on employment because some leave the labor force. D. overstate the effect of a recession on employment because many enter the labor force.

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Which market structure is characterized by many sellers, easy entry, and homogeneous products

a. perfect competition b. monopolistic competition c. oligopoly d. monopoly

Economics