Which statement is true?
A. The marginal cost curve intersects both the average variable cost curve and the average total cost curve at their minimum points.
B. The marginal cost curve intersects neither the average variable cost curve nor the average total cost curve at their minimum points.
C. The marginal cost curve intersects the average variable cost curve at its minimum point, but it does not intersect the average total cost curve at its minimum point.
D. The marginal cost curve intersects the average total cost curve at its minimum point, but it does not intersect the average variable cost curve at its minimum point.
A. The marginal cost curve intersects both the average variable cost curve and the average total cost curve at their minimum points.
You might also like to view...
Recent research has shown that the first firm to enter a market often does not have a long-term advantage over later entrants into the market. An example that has been used to illustrate this is
A) Xerox, which became a generic term for making photocopies. B) McDonald's entry into the high-end coffee market. C) the introduction of the first ballpoint pen in 1945. D) Abercrombie and Fitch, which was the first clothing company to market to young men.
If this firm were a perfect competitor, it would produce at _____ units of output and charging a price of _______.
A. 200; $7.00.
B. 200; $12.80.
C. 280; $10.40.
D. 280; $12.00.
Exhibit 8-8 Consumption function
?
In Exhibit 8-8, which of the following could cause the movement from C1 to C2?
A. a decrease in real asset holdings B. lower interest rates C. expectations that the economy will grow D. expectations of lower future prices
Paul Romer's theory of economic growth differs from traditional theories in that
A) Romer argues an investment-knowledge cycle can exist, but requires constant increases in investment rates, while traditional theories argue that investment rates can be constant. B) Romer argues that investment in human capital always occurs before investment in physical capital, while traditional theories emphasize the priority of physical capital. C) Romer argues an investment-knowledge cycle allows a one-time increase in investment to permanently increase a country's growth rate, while traditional theory argued such an investment would have only a short-term effect. D) Romer argues that investment in capital goods is not important in encouraging growth while investment in human capital is, whereas traditional theorists emphasize both human and physical capital.