If the 15th unit of output has a marginal cost of $29.50 and the average cost of producing 14 units of output is $30.23, what will happen to the average cost of production if the 15th unit is produced?
A) Average cost will fall.
B) Average cost could increase or decrease depending on what happens to fixed cost.
C) Average cost increases as more is produced.
D) Average cost could increase or decrease depending on what happens to variable cost.
A
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Refer to the following graphs. Given an increase in aggregate demand from AD1 to AD2, which of the following statements is true?
a. Classical economists argue the Aggregate Supply (AS) curve would be vertical like that shown in graph (a).
b. Keynesian economists argue the Aggregate Supply (AS) curve would be horizontal in the short run like that shown in graph (b).
c. Keynesian economists argue the Aggregate Supply (AS) curve would be vertical in the long run like that shown in graph (a).
d. All of the above.
In the long run,
a. monopolies will not incur economic losses b. the demand curve facing the firm is horizontal under monopoly c. economic profit and loss determines entry and exit into monopoly markets d. competition always destroys monopoly e. government always regulates monopoly
Which market is most likely to witness such actions and reactions as frequent new-product introductions, free samples, and aggressive advertising campaigns?
A. Oligopoly B. Perfect competition C. Monopoly D. Monopolistic competition
The long expansions during the 1990s and 2000s were the result of mass business adoption of computers and smart phones. This argument would be made by ________.
A. the Self-Correction View of macroeconomics B. Mainstream economists C. the Real Business Cycle theory D. the Monetarists