When marginal cost is rising, average variable cost
a. must be rising.
b. must be falling.
c. must be constant.
d. could be rising or falling.
d
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Generally, ________ motivates firms to enter an industry, while ________ motivates firms to exit an industry.
A. accounting profit; accounting loss B. economic profit; economic loss C. economic profit; accounting loss D. accounting profit; economic loss
The table above represents different points along a production possibilities curve. What is the marginal cost of moving from 2 bushels to 3 bushels of beans?
A) 9 bushels of carrots per bushel of beans B) 12 bushels of carrots per bushel of beans C) 3 bushels of carrots per bushel of beans D) 21 bushels of carrots per bushel of beans
If monetary policymakers cannot accurately forecast shifts in money demand, what are they really only left with for a short-term policy instrument and why?
What will be an ideal response?
Suppose the market demand curve for tacos can be expressed as QD = 120 - 3P - Pb, where QD is the quantity of tacos demanded, P is the price of a taco, and Pb is the price of a burrito. What is the relationship between burritos and tacos, from the point of view of consumers?
A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.