Which of the following is true of the relationship between the marginal cost function and the average total cost and average variable cost functions?
A) If MC is greater than ATC and AVC, then ATC and AVC will increase.
B) The ATC and AVC curves intersect the MC curve at minimum MC.
C) The MC curve, ATC curve, and AVC curve all intersect at the same point.
D) At each level of output, MC is equal to difference between AVC and ATC.
A
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Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000
Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries? A) The growth rate of real GDP per capita in Alpha and Beta will be the same. B) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries. C) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. D) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta.
Price leadership is a method by which oligopolies can
A. Encourage competition. B. Illegally raise prices. C. Maintain the "kink" in their demand curves. D. Increase prices without explicit price-fixing.
When monopolistically competitive firms earn ________ economic profits, other firms ________ an industry in the long run.
A. positive; enter B. zero; exit C. negative; enter D. zero; enter
If the euro replaces the U.S. dollar as the world's most popular currency, that will likely ________
A) reduce M1, without affecting M2 B) reduce M2, without affecting M1 C) cause a temporary increase in M1 D) affect neither M1 nor M2 E) none of the above